136k views
0 votes
The equation equals p1 0.054 over two represents the amount of money earned on a compound interest account with an annual interest rate of five

User Thinkhy
by
8.1k points

1 Answer

2 votes

Final answer:

The equation p1 0.054 over two represents the amount of money earned on a compound interest account with an annual interest rate of five percent. To calculate the amount, use the compound interest formula A = P(1 + r/n)^(nt). Substitute the given values to find the answer.

Step-by-step explanation:

The equation p1 0.054 over two represents the amount of money earned on a compound interest account with an annual interest rate of five percent. To calculate the amount of money earned, you need to use the compound interest 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 the interest is compounded per year, and t is the number of years. In this case, P1 = $100, r = 0.054 (or 5.4%), n = 2 (compounded semiannually), and t is the number of years. You can substitute these values into the formula to calculate the amount of money earned on the compound interest account.

User Jim Kiley
by
7.8k points