Question

Find the balance in the account: $2,000 principal, earning 7% compounding semi-annually, after 25 years

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2000\\ r=rate\to 7\%\to (7)/(100)\dotfill &0.07\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semi-annually, thus twice} \end{array}\dotfill &2\\ t=years\dotfill &25 \end{cases} \\\\\\ A = 2000\left(1+(0.07)/(2)\right)^(2\cdot 25)\implies A=2000(1.035)^(50) \implies A \approx 11169.85`