# SOLUTION: A principal of \$6500 is invested in an account paying an annual rate of 6%. Find the amount in the account after 6 years if the account compounded semiannually, quarterly, and mont

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 Click here to see ALL problems on Money Word Problems Question 498947: A principal of \$6500 is invested in an account paying an annual rate of 6%. Find the amount in the account after 6 years if the account compounded semiannually, quarterly, and monthly.Answer by Theo(3463)   (Show Source): You can put this solution on YOUR website!your equation is: f = p * (1 + (i/c))^(n*c) f = future value p = present value i = annual interest rate c = number of compound intervals per year n = number of years. your principal is 6500. your annual interest rate is 6% you want to find the amount in the account after 6 years. money is compounded semi-annually, quarterly, and monthly. money is compounded semi-annually: p = 6500 i = .06 (annual interest rate percent divided by 100%). n = 6 c = 2 i/c = .06/2 = .03 n*c = 6*2 = 12 formula becomes: f = 6500 * (1.03)^12 = 9267.45 money is compounded quarterly: p = 6500 i = .06 (annual interest rate percent divided by 100%). n = 6 c = 4 i/c = .06/4 = .015 n*c = 6*4 = 24 formula becomes: f = 6500 * (1.015)^24 = 9291.77 money is compounded monthly: p = 6500 i = .06 (annual interest rate percent divided by 100%). n = 6 c = 12 i/c = .06/12 = .005 n*c = 6*12 = 72 formula becomes: f = 6500 * (1.005)^72 = 9308.28781 the more compounding intervals per year, the more money you make.