4 years ago

A college student, trey works part time for an annual salary of $13,500 a year.

Mathematics

1 answer:

Aliun [14]4 years ago

8 0

So, Trey makes a salary of 13,500 a year. What exactly is the question here?

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$10,000 at an annual rate of 7%, compounded semi-annually, for 2 years

forsale [732]

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$\$13,107.96$

Step-by-step explanation:

Since interest is compounded semi-annually (half a year or 6 months), in a spawn of 2 years, the interest will have been compounded 4 times. As given in the problem, each time the interest is compounded, the new balance will be 107% or 1.07 times the amount of the old balance.

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$\text{New balanace}=10,000\text{ (old balance)}\cdot 1.07\cdot 1.07\cdot 1.07\cdot 1.07,\\\text{New balanace}=10,000\cdot 1.07^4=\boxed{\$13,107.96}$

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