Final answer:
To calculate the amount of money Amanda will have in her account after 5 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt). Using the given values, we find that Amanda will have approximately $534.06 in her account after 5 years.
Step-by-step explanation:
compound interest :
To calculate the amount of money Amanda will have in her account after 5 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the future value of the investment, P is the initial principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. Using the given values, we have A = 500(1 + 0.026/2)^(2x5), which simplifies to A = 500(1.013)^10.
Plugging this into a calculator, we find that A is approximately $534.06. Therefore, Amanda will have approximately $534.06 in her account after 5 years. Amanda invests $500 in an account with a 2.6% interest rate compounded semiannually. To calculate the future value of her investment after 5 years, we use the compound interest formula, which is A = P(1 + r/n)^(nt), where: