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adelina 88 [10]
3 years ago
9

Jimmy invests $4,000 in an account that pays 2% annual interest, compounded semi-annually. What is his balance, to the nearest c

ent, at the end of 10 years?
Mathematics
1 answer:
julia-pushkina [17]3 years ago
6 0

Answer:

$4,880.80

Step-by-step explanation:

A = P(1 + r/n)^nt

Where,

A = future value

P = principal = $4,000

r = interest rate = 2% = 0.02

n = number of periods = 2

t = time = 10

A = P(1 + r/n)^nt

= 4000( 1 + 0.02/2)^2*10

= 4000(1 + 0.01)^20

= 4000( 1.01 )^20

= 4000(1.2202)

= 4,880.8

A = $4,880.80 to the nearest cents

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