SOLUTION: Tabitha received $2,100 from her aunt as a birthday gift. She decided to put the money in an account to save for college. The account has a fixed interest rate of 3.5%, compounded

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Question 1001514: Tabitha received $2,100 from her aunt as a birthday gift. She decided to put the money in an account to save for college. The account has a fixed interest rate of 3.5%, compounded semi-annually.
How much money will be in the account after five years?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Tabitha received $2,100 from her aunt as a birthday gift. She decided to put the money in an account to save for college. The account has a fixed interest rate of 3.5%, compounded semi-annually.
How much money will be in the account after five years?
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A(t) = P(1+(r/n))^(nt)
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A(5) = 2100(1+(0.035/2))^(2*5)
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A(5) = 2100*1.0175^10
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A(5) = $2497.83
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Cheers,
Stan H.
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