130k views
3 votes
If you deposit $4000 into an account paying 6% annual interest compounded semi-

annually, how
much money will be in the account after 5 years?
$5387.42
$5375.66
$6546.61
$4706.14

User Javon
by
2.9k points

2 Answers

6 votes


Hello!

I say it's option B. $5375.66


\left[\begin{array}{ccc}PROCESS:\end{array}\right]

6% ⇒
(6)/(100)
0.06


A = 4,000
(1+ (0.006)/(2)) ×
2(5)


A= $
5375.66


\left[\begin{array}{ccc}ANSWER:\end{array}\right]

$5375.66


MiraculousAlejandra

User Mylinh
by
2.9k points
6 votes

Answer:

B. $5,375.66

Explanation:

Lets use the compound interest formula provided to solve this:


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

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 6% into a decimal:

6% ->
(6)/(100) -> 0.06

Since the interest is compounded semi-annually, we will use 2 for n. Lets plug in the values now:


A=4,000(1+(0.06)/(2))^(2(5))


A=5,375.66

Your answer is B. $5,375.66

User DUman
by
3.7k points