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7 votes
Find the total amount in the compound interest account.

$9000 is compounded semiannually at a rate of 11% for 18 years.

User Maddogandnoriko
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1 Answer

12 votes
12 votes

Answer:

$58,891.98

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 11/100

r = 0.11 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 9,000.00(1 + 0.11/1)(1)(18)

A = 9,000.00(1 + 0.11)(18)

A = $58,891.98

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $9,000.00 at a rate of 11% per year compounded 1 times per year over 18 years is $58,891.98.

User Christian Weiss
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