SOLUTION: $10 is invested semiannually for 29 years at 5.5 % compounded semiannually. How much would the accumulated amount be?

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Question 545349: $10 is invested semiannually for 29 years at 5.5 % compounded semiannually. How much would the accumulated amount be?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!

A=P%281%2Br%2Fn%29%5E%28n%2At%29 Start with the compound interest formula


A=10%281%2B0.055%2F2%29%5E%282%2A29%29 Plug in P=10, r=0.055 (the decimal equivalent of 5.5%), n=2 and t=29.


A=10%281%2B0.0275%29%5E%282%2A29%29 Evaluate 0.055%2F2} to get 0.0275


A=10%281.0275%29%5E%282%2A29%29 Add 1 to 0.0275 to get 1.0275


A=10%281.0275%29%5E%2858%29 Multiply 2 and 29 to get 58.


A=10%284.82332106540981%29 Evaluate %281.0275%29%5E%2858%29 to get 4.82332106540981.


A=48.2332106540981 Multiply 10 and 4.82332106540981 to get 48.2332106540981.


A=48.23 Round to the nearest hundredth (ie to the nearest penny).


So the accumulated amount would be $48.23