Question

Geoff has deposited $669 in a savings account that earns interest at a rate of 2.6% compounded twice a year. What will the account balance be in 12 years?

Answer 1

Answer:

the account balance be in 12 years is $912.12

Step-by-step explanation:

Geoff has deposited $669 in a savings account that earns interest at a rate of 2.6% compounded twice a year.

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

A is the balance amount

P is the Initial amount = 669

R= rate of interest 2.6%= 0.026

n is the number of times compounded=2

t is the number of years= 12

Plug in all the values and find out A

$A=669(1+\frac{0.026}{2} )^{2 \cdot\ 12}$

$A=669(1+0.013)^{24}$

A= 912.12

the account balance be in 12 years is $912.12

Answer 2

total = 669*(1+0.026/2)^2*12

total = 669* (1.013)^24

total = 669 * 1.363410671

 total = $912.12