Question

At age 15​, a person deposits ​$380 in a savings account paying 2​% interest compounded semiannually. How much money will be in the account 70 years​ later, when he is 85 years​ old? Would his savings have doubled in that​ time?

Answer 1

Explanation:

55 years semiannual means there are 110 periods = n

Decimal interest per period =i = .02 / 2 = .01

FV = PV ( 1 + i)^n

=$ 380 ( 1+ .01)^110 = $ 1135.36