Question

Find the total amount in the compound interest account $10000 is compounded semiannually at a rate of 11% for 20 years. (Round to the nearest cent.)

Answer 1

The compound interest formula is:

`A=P(1+(r)/(m))^(mt)\begin{cases}A=amount \\ P=initialValue \\ r=interest \\ m=\#timesCompounedPerYear \\ t=years\end{cases}`

Therefore:

`A=(10000)(1+(0.11)/(1))^(20)=80623.12`