Question

A $6,000.00 principal earns 8% annual interest, compounded semiannually (twice per year). After 35 years, what is the balance in the account?
A. $22,800.00
B. $39,600.00
C. $88,712.07
D. $93,429.71

Answer 1

Answer:

After 35 years balance in the account  = $93429.71

Explanation:

We will applying the compound interest formula.

A = $P(1 +\frac{r}{n})^{nt}$

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% = $\frac{8}{100}$ = 0.08

n = 2 (because of twice in a year)

t = 35 years

$A= 6000(1 + \frac{0.08}{2}) ^{2*35}$

A = 6000$(1.04)^{70}$

A= $93429.71    (Option D)

Answer 2

If im not wrong then i sure its C