SOLUTION: I am having trouble with this question can some one please help me I opened up a savings account today at Carthage Federal Savings and Loan with $800.00. If the yearly interes

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Question 281450: I am having trouble with this question can some one please help me

I opened up a savings account today at Carthage Federal Savings and Loan with $800.00. If the yearly interest rate of 4% is compounded each month, how much interest will I earn in six months?
Thank you for your help in advance.

Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
I opened up a savings account today at Carthage Federal Savings and Loan with $800.00. If the yearly interest rate of 4% is compounded each month, how much interest will I earn in six months?
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A(t) = P(1+(r/n))^(nt)
A(1/2) = 800(1+(0.04/12)^(12*(1/2))
A(1/2) = 800(1+0.0033)^6
A(1/2) = 800*1.02017
A(1/2) = $816.13
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Interest is $16.13
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Cheers,
Stan H.