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How much money will there be in an account at the end of 7 years if $14000 is deposited at 7% compounded

semi-annually?
The amount after 7 years will be $
(Round to the nearest cent.)

1 Answer

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Answer: A= $22,661.7

Explanation:

Formular for compound interest is

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

Where P is the Principal given as $14000

R is rate given as 7% = 7/100 = 0.07

T is the time given as 7years

n is semi-annual, then n =2

Slot the values into the formula

A = 14000 (1 + 0.07/2) ^ 2 x 7

14000. ( 1 + 0.035) ^ 14

14000. (1.035)^14

14000 x 1.6186

A= $22661.7233

To the nearest cent = $22,661.7

User Charleetm
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