SOLUTION: $2,000 is deposited in a savings account at 4% interest compounded semi-annually. Find the balance after 7 years and the amount of interest earned during that time
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Question 1139548: $2,000 is deposited in a savings account at 4% interest compounded semi-annually. Find the balance after 7 years and the amount of interest earned during that time
Found 2 solutions by greenestamps, josmiceli:
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!
4% annual interest compounded semi-annually means 2% interest every 6 months.
7 years compounded semi-annually means 14 compounding periods.
The balance after 7 years is
Use a calculator.
Then of course the interest earned is the final balance, minus the original $2000.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
the balance is $2,638.96
The interest is $638.96
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