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CaHeK987 [17]
1 year ago
13

Use the formula for compound amount:$14,800 at 6% compounded semiannually for 4 years

Mathematics
1 answer:
GalinKa [24]1 year ago
6 0

SOLUTION

Given the question in the question tab, the following are the solution steps to answer the question.

STEP 1: Write the formula for calculating compound amount

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

where

A = final compounded amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

STEP 2: Write the given data

Semiannually means that n will be 2

P=14,800,r=\frac{6}{100}=0.06,n=2,t=4

STEP 3: Calculate the compound amount

\begin{gathered} A=14800(1+\frac{0.06}{2})^{2\times4}\Rightarrow A=14800(1+0.03)^{2\times4} \\ A=14800(1.03)^8 \\ A=14800\times1.266770081 \\ A=\text{\$}18,748.1972 \end{gathered}

Hence, the compounded amount after 4 years is $18,748.1972

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