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olganol [36]
3 years ago
8

Margaret deposits $1,000 in a savings account that pays 1.4% interest compounded

Mathematics
1 answer:
ozzi3 years ago
8 0

Answer:

The balance after 1 year is;

$1,014.05

Step-by-step explanation:

To do this, we use the compound interest formula

That will be ;

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

A is the amount generated which we want to calculate

r is the rate = 1.4% = 0.014

P is the amount deposited = $1,000

n is the number of times it is compounded annually which is 2 (semi-annually means 2 times in a year)

this the number of years which is 1

we have this as:

A = 1,000( 1 + 0.014/2)^(2*1)

A = 1,000(1 + 0.007)^2

A = 1,000(1.007)^2

A = $1,014.05

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