Question

Victoria invests $200 into an account with a 2.6% interest rate that is compounded semiannually.

How much money will she have in this account if she keeps it for 10 years?
Round your answer to the nearest dollar,

Answer 1

A = $258.95

Explanation:

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

r = R/100

r = 2.6/100

r = 0.026 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 200.00(1 + 0.026/2)(2)(10)

A = 200.00(1 + 0.013)(20)

A = $258.95