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Aleksandr-060686 [28]
3 years ago
7

Suppose 5,500 dollars is placed in a saving account how much money would be in the saving account after 5 years if the compound

interest semiannually at a rate of 5% per year
Mathematics
1 answer:
Semmy [17]3 years ago
3 0

Answer:

FV= $7,040.46

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $5,500

Number of periods (n)= 5*2= 10 semesters

Interest rate (i)= 0.05/2= 0.025

<u>To calculate the future value (FV), we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 5,500*(1.025^10)

FV= $7,040.46

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