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Goryan [66]
2 years ago
15

1,030 at 4% compounded semiannually for 2 years

Mathematics
1 answer:
kotegsom [21]2 years ago
6 0

Answer: $1114.91

Step-by-step explanation:

The formula for compound interest is

A= P(1+\frac{r}{n})^{nt}  \\

Where

A = final amount

P = initial principal balance (1030 for this)

r = interest rate (0.04 for this)

n = number of times interest applied per time period (2 for this)

t = number of time periods elapsed (2 for this)

A= 1030(1+\frac{.04}{2})^{(2)(2)}  \\\\A= 1030(1+0.02)^{4} \\A=1030(1.02)^4\\A=1114.905125

This rounds up to $1114.91

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