SOLUTION: Rhonda deposits $5,600 in a savings account that pays 1.5% interest, compounded semi-annually. What would her ending balance be after 4 years? Round to the nearest cent.
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Question 1165364: Rhonda deposits $5,600 in a savings account that pays 1.5% interest, compounded semi-annually. What would her ending balance be after 4 years? Round to the nearest cent.
f = p * (1 + r) ^ n
f is the future value
p is the present value (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 = 5600
f = what you want to find
r = 1.5% / 2 = .0075 semi-annually
n = 4*2 semi-annual periods
formula becomes f = = 5944.95 dollars. ANSWER
Solved.
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To see many other similar solved problems on compounded interest accounts, look into the lesson
- Compound interest percentage problems
in this site.
