Question

Chris invests $20,000 into a savings account that accrues 5.2% interest compounded semiannually. What is the balance of Chris' account after 3 years?

Answer 1

The amount to be paid after 3 years is  $23,329.97.

What is Compound Interest?

In order to compute compound interest, multiply the principle of the original loan by the annual interest rate multiplied by the number of compound periods minus one. You will then be left with the principal amount of the loan plus compound interest.

Given:

P= 20,000

r= 5.2%

t= 3 years

r = R/100

r = 5.2/100

r = 0.052 rate per year,

Now, solve for A

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

A = 20,000.00$(1 + 0.052/2)^{(2)(3)$

A = 20,000.00$(1 + 0.026)^(6)$

A = $23,329.97

Learn more about Compound interest here:

brainly.com/question/14295570

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