Question

How much money will there be in an account at the end of 10 years if $3000 is deposited at 3% interest compounded

semi-annually? (Assume no withdrawals are made. Use the formula A=P
-p(1-4)
for compound interest,

Answer 1

$4040.57

Explanation:

A=P(1+(r/n))^nt

P = Principal = 3000

r = rate = 0.03

n = no. times payed each year = 2

t = years = 10

A = 3000(1 + (0.03/2))^(2x10)

A = 3000(1.015)^20

A = 4040.57 (2.d.p)

Hope this helped!