Formula: A = P (1 + ht
Solve the problem by answering the following questions:
An initial investment of $5575 is appreciated for 12 years in an account that earns 3.25%
interest, compounded semiannually. Find the amount of money in the account at the end
of the period.
i. What does each of these variables represent:
A:
P:
r:
n:
t: 12
ii. List all the known and the unknown for the problem.
iii. Use the given formula and show your work in finding the unknown.
iv. Briefly, explain what your finding means.