Question

URGENT!! Use the compound interest formula A = P(1 + i)^n. Evaluate,

$1200 at 8.4% per year, compounded semi-annually, for 3 years 6 months

Answer 1

$38,025.04

Explanation:

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

r = R/100

r = 8.4/100

r = 0.084 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 1,200.00(1 + 0.084/2)(2)(42)

A = 1,200.00(1 + 0.042)(84)

A = $38,025.04