Question

Find the total amount
$16.000 at 14% compounded
semiannually for 2 years

Answer 1

The answer would be 20.97273616 or (rounded to the nearest cent) would be $20.97

Explanation:

The reason for this is that the formula for compounded interest is
`A=P(1+(r)/(n))^(t)/(n)` where A is the total amount, P is the initial amount, r is the growth factor or the percent, n is the number of compounding periods, and t is the time. You would substitute P for 16, r for 0.14 (14%), n for 2 as it compounded semiannually so it for every 6 months instead of 1 year (annual) so is compounded 2 times per year, and t for 2. And just solve the equation and you get that A is equal to 20.97273616 but since we are talking about money( only round if asked) then it would be 20.97.

Hope this helps!!!!