A $6,000.00 principal earns 8% annual interest, compounded semiannually (twice per year). After 35 years, what is the balance in
2 answers:
Answer:
After 35 years balance in the account = $93429.71
Explanation:
We will applying the compound interest formula.
A =
Where,
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years
Given that,
P = $6000
r = 8% = = 0.08
n = 2 (because of twice in a year)
t = 35 years
A = 6000
A= $93429.71 (Option D)
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