Question

Deshaun deposited $4000 into an account with 5.1% interest, compounded semiannually. Assuming that no withdrawals are made, how much will he have in the account after 3 years?

Answer 1

Answer:

$A = 4652.37 \text{dollars}$

is the amount after 3 years!

Step-by-step explanation:

Data:

$P$ = 4000 initial amount

$n$ = rate at which the interest is applied per period = 2 times per year.

$t$ = periods = 3 years

$n\times t$ = number of times the interest is applied = 2*3= 6 times.

$r$ = interest rate = 5.1% = 0.051

Now we can use our compound interest formula:

$A = P\left(1+\dfrac{r}{n}\right)^{n\times t}$

$A = 4000\left(1+\dfrac{0.051}{2}\right)^{6}$

$A = 4652.37 \text{dollars}$

is the amount after 3 years!

Answer 2

Answer:

A = $4652.37

Step-by-step explanation:

Given:

Initial amount (P) = $4000

Interest rate (r) = 5.1 %

                      n = 2 (Compounding per year)

                      t = 3 years

Using Compound interest formula:

$A =P(1+ r/n )^(nt)\\\\A = 4000( 1 + (0.051/2))^(2*3)\\A = 4652.37$