Question

Find the total amount in the compound interest account. ​$9000 is compounded semiannually at a rate of 12​% for 18 years. ​$ nothing ​(Round to the nearest​ cent.)

Answer 1

Answer:

The total ammount in the compound interest account is $73325.30

Step-by-step explanation:

The compound interest formula is given by:

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

A: Amount of money(Balance)

P: Principal(Initial deposit)

r: interest rate(as a decimal value)

n: number of times that interest is compounded per unit t

t: time the money is invested or borrowed for.

In our problem, we have that:

A = total amount

P = $9000

r = 0.12

n = 2(semiannually means twice a year)

t = 18

So:

$A = 9000 (1 + \frac{0.12}{2})^{36}$

$A = 9000*(8.147)$

$A = 73325.30$

The total ammount in the compound interest account is $73325.30