Answer:
Step-by-step explanation:
Problem
If you deposit $4500 into an account paying 7% annual interest compounded semi anualy , how much money will be in the account after 9 years?
Result
The amount is $8358.7 and the interest is $3858.7.
Explanation
STEP 1: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$4500 , r=7% , n=2 and t=9 years
After plugging the given information we have
AAAA=4500(1+0.072)2⋅9=4500⋅1.03518=4500⋅1.857489=8358.7
STEP 2: To find interest we use formula A=P+I, since A=8358.7 and P = 4500 we have:
A8358.7II=P+I=4500+I=8358.7−4500=3858.7
