SOLUTION: APR 3.4%, interest is compounded semianually. With no additional deposits or withdrawals for a year, what will balance be after all interest is paid on the principal balance of $97

Question 734836: APR 3.4%, interest is compounded semianually. With no additional deposits or withdrawals for a year, what will balance be after all interest is paid on the principal balance of $9700. I would really appreciate some help understanding this, thanks!
Answer by Edwin McCravy(20067) (Show Source): You can put this solution on YOUR website!


The compound interest formula is



Take out the  and put 9700 in its place:



Take out the  and put 0.034 in its place:



Take out the  and put 2 in its place (because the
word "semiannually" means twice a year.



Take out the  and put 1 year in its place:







P = $10032.60

Edwin

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