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Pete invested $9566 in an account at 6% compounded semi-annually. Calculate the compound interest C after 7 years.

User Havana
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1 Answer

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Answer:

$14,469.43

Explanation:

(see attached)

the formula for compound interest is as follows:

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

Where

A = Final amount (we are asked to find this)

P = Principal Amount = $9,566

r = interest rate = 6% = 0.06

t = time elapsed = 7 years

n = 2 (number of times per year that interested is compounded for semi annual)

Substituting the above into the equation,

A = 9,566 [ 1 + (0.06/2) ]^[ (2)(7) ] = $14,469.43

Pete invested $9566 in an account at 6% compounded semi-annually. Calculate the compound-example-1
User Kemp
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