SOLUTION: for the following exercise, use the compound interest formula, A(t) = P(1+(r/n))^nt where money is measured in dollars. An account is opened with an initial deposit of $7,500

Algebra ->  Finance -> SOLUTION: for the following exercise, use the compound interest formula, A(t) = P(1+(r/n))^nt where money is measured in dollars. An account is opened with an initial deposit of $7,500      Log On


   

Question 1059795: for the following exercise, use the compound interest formula,
A(t) = P(1+(r/n))^nt where money is measured in dollars.
An account is opened with an initial deposit of $7,500 and earns 3.9% interest compounded semi-annually. What will the account be worth in 25 years? (Round your answer to the nearest cent.)
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A%28t%29++=+P%2A%28+1+%2B+r%2Fn+%29%5E%28nt%29+
+P+=+7500+
+r+=+.039+
+n+=+2+
+t+=+25+
---------------------
+A%2825%29+=+7500%2A%28+1+%2B+.039%2F2+%29%5E%282%2A25%29+
+A%2825%29+=+7500%2A1.0195%5E50+
+A%2825%29+=+7500%2A2.6264+
+A%2825%29+=+19698.03+
The account will be worth $19.698.03
------------------------------------
check:
+19698.03+=+7500%2A%28+1+%2B+.039%2F2+%29%5E%282%2A25%29+
+2.6264+=+1.0195%5E50+
Take the log of both sides
+.41936+=+50%2A.008387+
+.41936+=+.41936+
OK