SOLUTION: Interest is compounded semiannually. Find the amount in the account and the interest earned after the given time. Principal $5000 Rate of Interest 8% Time 3 years Questi

Question 1195757: Interest is compounded semiannually. Find the amount in the account and the interest earned after the given time.

Principal $5000
Rate of Interest 8%
Time 3 years

Question content area bottom
Part 1
The amount in the account is $

enter your response here.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Answer by math_tutor2020(3817) (Show Source): You can put this solution on YOUR website!

P = 5000 = principal
r = 0.08 = decimal form of the annual interest rate
n = 2 = number of times we compound the money per year
t = 3 years

Use those values to find the following:
A = P*(1+r/n)^(n*t)
A = 5000*(1+0.08/2)^(2*3)
A = 6326.59509248
A = 6326.60
This is how much is in the account at the 3 year mark.

Subtract off the principal to get the interest made
i = A - P
i = 6326.60 - 5000
i = 1326.60

Answers:
Account Balance = $6326.60
Interest Earned = $1326.60

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