SOLUTION: I invested $200 a month for 18 years at 5.5% interest compounded semiannually. What will be the total amount saved at the end of the 18 years?

Question 472077: I invested $200 a month for 18 years at 5.5% interest compounded semiannually. What will be the total amount saved at the end of the 18 years?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Start with the compound interest formula

Plug in (the amount invested), (the decimal equivalent of 5.5%), (since interest is compounded semiannually) and (18 years).

Evaluate } to get

Add to to get

Multiply and to get .

Evaluate to get .

Multiply and to get .

Round to the nearest hundredth (ie to the nearest penny).

So there will be $531.10 in the account.
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