SOLUTION: How much interest would you earn in 4 years if you invested $500 in an account that pays 4.5% per annum, compounded semi-annually?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: How much interest would you earn in 4 years if you invested $500 in an account that pays 4.5% per annum, compounded semi-annually?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 397631: How much interest would you earn in 4 years if you invested $500 in an account that pays 4.5% per annum, compounded semi-annually?
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
The balance after 4 years would be B+=+p%281%2Br%2Fn%29%5E%28nt%29+=+500%281+%2B+0.045%2F2%29%5E%282%2A4%29++=597.42.
Then the interest should be 597.42 - 500 = 97.42.