SOLUTION: A principal of $1000 is invested in an account paying an annual interest rate of 12%. Find the amount in the account after 5 years if the account is compounded semiannually.
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Question 285798: A principal of $1000 is invested in an account paying an annual interest rate of 12%. Find the amount in the account after 5 years if the account is compounded semiannually.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A principal of $1000 is invested in an account paying an annual interest rate of 12%. Find the amount in the account after 5 years if the account is compounded semiannually.
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A(t) = P(1+(r/n))^(nt)
A(5) = 1000(1+0.12/2)^(2*5)
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A(5) = 1000(1.06)^(10)
A(5) = $1790.85
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Cheers,
Stan H.
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