SOLUTION: what would be the total investment and the interest earned when $2,500 is invested at 5% compounded semiannually for 3 years?

Question 717720: what would be the total investment and the interest earned when $2,500 is invested at 5% compounded semiannually for 3 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
what would be the total investment and the interest earned when $2,500 is invested at 5% compounded semiannually for 3 years?
----
A(t) = P(1+(r/n))^(nt)
A(3) = 2500(1+(0.05/2))^(2*3)
---
A(3) = $2899.23
===================
Interest = 2899.23-2500 = $399.23
-------
Cheers,
Stan H.
RELATED QUESTIONS
I am lost on this question. Please help if you can... would be greatly appreciated and... (answered by lwsshak3)

A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)

For the investment with interest compounded annually, find the final balance and the (answered by stanbon)

Paul made two investments: A: $4,000.00 at 4.5% compounded semi-annually, for 3 years;... (answered by ikleyn)

I have 2 questions 1 is that if sandra invested 30,000 at 8% compounded annually. what... (answered by stanbon)

Hi, Please help me solve this problem: The formula for computing the amount A of an (answered by edjones)

How much interest is earned for the investment? $20,000 for 2 years at 5% compounded... (answered by Tsid)

Find the final amount if $750 is invested at 5% interest compounded semiannually for 20... (answered by rfer)

If $20,000 is invested at an interest rate of 2% per year, compounded semiannually, find... (answered by josmiceli)