Find the final amount of money in an account if $7,500 is deposited at 7 % interest compounded semi-annually and the money is left for 5 years.
The final amount is $
Answer pls
we have given you the formulas, and even applied them for you.
What is still bothering you?
Sorry it because I lost the formula and can’t find it since I deleted most of my tabs and can’t figure out this certain problem. How much should be invested now at 2.85% compounded monthly to have $43,000 in 19 years? Do I use the same formula and if so could you retype it please:)
To find the final amount of money in an account, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
In this case, the principal amount (P) is $7,500, the annual interest rate (r) is 7% (0.07 as a decimal), the number of times interest is compounded per year (n) is 2 (semi-annually), and the number of years (t) is 5.
So, plugging these values into the formula, we get:
A = 7500(1 + 0.07/2)^(2*5)
Calculating the expression inside the parentheses first:
1 + 0.07/2 = 1.035
Next, evaluating the power of the expression:
(1.035)^(2*5) = 1.035^10
Using a calculator, we find that 1.035^10 ≈ 1.40255.
Now, multiplying the principal amount by the result:
A = 7500 * 1.40255
Calculating this multiplication:
A ≈ $10,519.13
Therefore, the final amount of money in the account after 5 years would be approximately $10,519.13.