Question

Bill deposits $7100 with his credit union in an account paying 6% compounded semiannually. How much will be repaid in 5 years? use the compound interest table.

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 &\$7100\\ r=rate\to 6\%\to (6)/(100)\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semi-annually, thus two} \end{array}\dotfill &2\\ t=years\dotfill &5 \end{cases} \\\\\\ A = 7100\left(1+(0.06)/(2)\right)^(2\cdot 5) \implies A = 7100( 1.03)^(10)\implies A \approx 9541.81`