Question

Michael deposits $35,000 today in his bank account. calculate the approximate amount he will have at the end of six years if interest is 10% per year and is compounded semiannually.?

Answer 1

Compound interest is given by:
A=p(1+r/(100*n))^(nt)
where;
A=future amount
p=principle amount=$35,000
r=rate=10%=0.1
n=number of terms=2
t=time=6
Hence,
A=35,000(1+0.05)^(2*6)
A=35000(1.05)^12
A=$62,854.97
The amount of money after 6 years will be $62,854.97