Question

Sam puts $500 in the bank and does not put any more money in or take any out for eight years. He receives 6% interest yearly, compounded semi-annually. How much money will be in the account after eight years?

Answer 1

Answer:

$894

Step-by-step explanation:

0.06 x 500 x 8^1.25 (-9)= 500+ 403 = $903-9= $894

1.25 = 1/8 of 1 (-9)

1=each power.

8th year = $843.75

9th year = $894

Semi annually you can do the same as 16/1 -17