SOLUTION: Ques: Today is your 21st birthday and your bank account balance is $15,000. Your account is earning 4.5% interest compounded semiannually. How much will be in the account on your

Question 960524: Ques: Today is your 21st birthday and your bank account balance is $15,000. Your account is earning 4.5% interest compounded semiannually. How much will be in the account on your 50th birthday?
a. $53,761
b. $54,521
c. $55,984
d. $58,429

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
50 - 21 = 29 years, so t = 29

"4.5% interest compounded semiannually" so r = 0.045 and n = 2

"your bank account balance is $15,000" ----> P = 15000

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A = P*(1+r/n)^(n*t)

A = 15000*(1+0.045/2)^(2*29)

A = 54,520.976597888

A = 54,521

So the answer is choice B

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