A college savings account pays 8.2% annual interest compounded semiannually. What is the balance of an account after 12 years if

Question

3 years ago

11

$21,000 was initially deposited?

1 answer:

svp [43] · Answer 1 · 2022-04-22T19:28:38+03:00

9514 1404 393

Answer:

$55,085.44

Step-by-step explanation:

The formula for the account balance is ...

A = P(1 +r/n)^(nt)

where principal P is invested at annual rate r compounded n times per year for t years. Using the given values, we find the balance to be ...

A = $21,000(1 +0.082/2)^(2·12) = $21,000(1.041^24) ≈ $55,085.44

The balance is $55,085.44 after 12 years.