Question

Find the balance in the account: $1,600 principal earning 7%, compounded semi-annually, after 33 years

Answer 1

A principal invested for n number of years increases as the equation projects F = P * (1+ i) ^n where F is the future worth, p is the present worth or principal and i is the interest rate. substituting, F = $1600 * (1+ 0.07/2) ^33*2 equal to amount of future worth or balance of  $15494.70

Answer 2

Answer:

$15,494.70

Step-by-step explanation:

Compounding twice year, 3.5% each, 66 times  

result=$1,600*1.035^66 = $15,494.70