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7,300 at 7% compounded semiannually for 3 years, I don't know how to solve these equations, can you help?

User Corwin
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1 Answer

4 votes

Answer:

$8942.14

Explanation:

A = P(1+r/n)^nt where:

A is the future value of the investment/loan, including interest.

P is the principal investment amount (the initial deposit or loan amount) = $7,300.

r is the annual interest rate (decimal) = 7% or 0.07.

n is the number of times interest is compounded per year = 2 (since it's compounded semiannually).

t is the time the money is invested or borrowed for in years = 3

Plugging in the values, we get:

A = 7300*(1+(0.07/2))^(2*3)

≈ 7300*(1.035)^6

≈ 7300*1.225043

$8942.14

User Giant
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