The lee family bought their home for $220,000 this year. The equation V = $220,000(1.038)* can be used to find the value, V, for
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Answer:
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
First, change 6% into a decimal:
6% -> -> 0.06
Since the interest is compounded semi-annually, we will use 2 for n. Lets plug in the values now and your equation will be: