Question

6. Quinn invested $65,000 in an account that pays 6% interest compounded

semiannually: What will be the balance in his account in 12 years?

Answer 1

≈$263,000

Explanation:

Compound Interest formula:

`A=P(1+R/100)^n`

In 12 years, interest will be applied 24 times (12 * 2 = 24) [Semi-annual means twice per year]

`P=$65,000\\R=6\\n=24\\A=65000(1+6/100)^(24) \\A=$263,180.75`