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Find the total amount in the compound interest account. $5550 is compounded semiannually at a rate of 10% for 13 years. $ *** (Round to the nearest cent.)​

User Mrmclovin
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Final answer:

The total amount in the compound interest account is approximately $11537.34

Step-by-step explanation:

To find the total amount in the compound interest account, we can use the formula A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, the principal amount is $5550, the annual interest rate is 10%, and the interest is compounded semiannually, so n = 2. The number of years is 13.

Substituting these values into the formula:

A = 5550(1 + 0.1/2)^(2*13)

Simplifying:

A = 5550(1.05)^(26)

Calculating the value of (1.05)^26:

(1.05)^26 ≈ 2.07793

Now, multiply the principal amount by the value we just calculated:

A ≈ 5550 * 2.07793

Therefore, the total amount in the compound interest account is approximately $11537.34.

User Levi Baguley
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