SOLUTION: can someone help me with this problem please: Find the compound interest earned by the deposit. Round to the nearest cent. $3000 at 12% compounded semiannually for 10 years

Algebra ->  Equations -> SOLUTION: can someone help me with this problem please: Find the compound interest earned by the deposit. Round to the nearest cent. $3000 at 12% compounded semiannually for 10 years       Log On


   

Question 161707: can someone help me with this problem please:
Find the compound interest earned by the deposit. Round to the nearest cent.
$3000 at 12% compounded semiannually for 10 years
a. 2372.54
b. 6621.41
c. 3600.00
d. 6317.54
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The formula is:
A+=+P%2A%281+%2B+%28r%2Fn%29%29%5E%28nt%29
P= original amount
A= amount after t years
r= interest rate
n= number of times per year the interest is compounded
--------------
P+=+3000
t+=+10
n+=+2
r+=+.12
A+=+3000%2A%281+%2B+%28.12%2F2%29%29%5E%282%2A10%29
A+=+3000%2A%281+%2B+.06%29%5E20
A+=+3000%2A%281.06%29%5E20
A+=+3000%2A3.207
A+=+9621.41
Interest earned = A+-+P
9621.41+-+3000+=+6621.41
The answer is (b)