SOLUTION: You choose to invest your $3410 income tax refund check (rather than spend it) in an account earning 5% compounded semiannually. How much will the account be worth in 5 years. (Rou

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Question 1146730: You choose to invest your $3410 income tax refund check (rather than spend it) in an account earning 5% compounded semiannually. How much will the account be worth in 5 years. (Round your answer to the nearest cent)
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


5 years semiannually at 5% annual interest means 10 compounding periods, each with 2.5% interest.

Apply the growth factor 1+.025 10 times to the beginning principal:

3410%2A%281.025%29%5E10

You can do the calculation....