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I am Lyosha [343]

4 years ago

7

A $3,500 principal earns 3% annual interest, compounded semiannually (twice per year). After 20 years, what is the balance in th

e account?
a. $7,700.00 b. $4,713.99 c. $5,600.00 d. $6,349.06

1 answer:

Tpy6a [65]4 years ago

5 0

How many semiannual periods are there in 20 years... 20×2 = 40

FW = PW(1+i)^N
FW = $3500(1+0.03)^40

solve for FW
(sorry no calculator on me)

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