Question

Ashley deposits $1000 into an account that earns 4% interest compounded 2 times per year. How much money will Ashley have in her account after 5 years? Round to the nearest cent.

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 1000\\ r=rate\to 4\%\to \frac{4}{100}\to &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{twice, thus} \end{array}\to &2\\ t=years\to &5 \end{cases} \\\\\\ A=1000\left(1+\frac{0.04}{2}\right)^{2\cdot 5}$