SOLUTION: How much interest is earned in 6 years on $8600 deposited in an account paying 7% interest, compounded semiannually? (Round your answer to two decimal places.)
Algebra ->
Finance
-> SOLUTION: How much interest is earned in 6 years on $8600 deposited in an account paying 7% interest, compounded semiannually? (Round your answer to two decimal places.)
Log On
Question 1202017: How much interest is earned in 6 years on $8600 deposited in an account paying 7% interest, compounded semiannually? (Round your answer to two decimal places.)
You can put this solution on YOUR website! .
How much interest is earned in 6 years on $8600 deposited in an account paying 7% interest,
compounded semiannually? (Round your answer to two decimal places.)
~~~~~~~~~~~~~~~~~~~~
f = p * (1 + r) ^ n
f is the future value
p is the principal (one-time original deposit)
r is the interest rate per time period as a decimal number
n is the number of time periods.
in your problem:
p = 8600
r = 0.07/2 = 0.035 semi-annually
n = 6*2 = 12 semi-annual periods
formula becomes f = = = 12995.19 dollars. ANSWER
Solved.
--------------
To see many other similar solved problems on compounded interest accounts, look into the lesson
- Compound interest percentage problems
in this site.
