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I am Lyosha [343]
3 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
Mathematics
1 answer:
Tpy6a [65]3 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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