contestada

Shandra's parents put $1,500 in her bank account for college tuition. At an interest rate
of 8.25% compounded semiannually, what will be the balance after 18 years?

Respuesta :

opudodennis

Answer:

$6,427.99

Step-by-step explanation:

-We first find the effective annual interest rate as follows:

[tex]i_m=(1+i/m)^m-1\\\\=(1+0.0825/2)^2-1\\\\=0.084202[/tex]

#We the use this rate to find the compounded amount after 18 years:

[tex]A=P(1+i_m)^n\\\\=1500(1.084202)^{18}\\\\=6427.99[/tex]

Hence, the amount after 18 years is $6,427.99

Otras preguntas