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svetoff [14.1K]
4 years ago
10

2. On December 31, Juan Carlos made a $ 7,000 deposit in an account that pays 2.975% interest compounded semi-annually. How much

will be in that acqount at the end of two years.
Mathematics
1 answer:
inna [77]4 years ago
6 0

Answer:$ 7425.89

Step-by-step explanation:

Formula to find the compound amount ( compounded semiannually) :-

A=P(1+\dfrac{r}{2})^{2n} , where P is the principal amount, r is rate of interest ( in decimal), and n is time in years.

Given : P= $7000

r=2.975%=0.02975

Time : n= 2

Then, The amount in account after 2 years:-

A=7000(1+\dfrac{0.02975}{2})^{2\times2}\\\\=7425.88565609\approx7425.89

Hence, Amount in account after 2 years = $ 7425.89

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