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antoniya [11.8K]
3 years ago
11

Marshall invest $4500 into an account bearing 6% interest compounded semiannually. How much interest will be added into this acc

ount after five years? Round to the nearest cent
Mathematics
1 answer:
Sphinxa [80]3 years ago
4 0

Answer:

$1547.62

Step-by-step explanation:

The principal Marshall invested is $4500.

The rate of interest is 6%

The compound interest formula is

A=P(1+r)^n

We substitute P=4500,r=0.06 and t=5 to obtain:

A=4500(1+ \frac{0.06}{2} )^ {2 \times 5}

We simplify to get:

A=4500(1+ 0.03)^ {10} = 4500 \times  {1.03}^{10}

This gives us:

A=6047.62

The interest after 5 years is

6047.62 - 4500 = 1547.62

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