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UkoKoshka [18]
2 years ago
7

Fatima opened a savings account with $7,500. She decided to deposit that same amount semiannually. This account earns 3.975% int

erest compounded semiannually. Exercises 5-7 are about Fatima's account. 5. What is the future value of the account after 10 years?​
Mathematics
1 answer:
docker41 [41]2 years ago
3 0

Answer:

A = $11117.25

Step-by-step explanation:

Given the following data;

Principal = $7,500

Interest rate = 3.975% = 3.975/100 = 0.03975

Number of times, n = 2

Time, t = 10 years

To find the future value, we would use the compound interest formula;

A = P(1 + \frac{r}{n})^{nt}

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Substituting into the equation, we have;

A = 7500(1 + \frac{0.03975}{2})^{2*10}

A = 7500(1 + 0.019875)^{20}

A = 7500(1.019875)^{20}

A = 7500(1.4823)

A = $11117.25

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