Question 664200: Please help me, I am horrible at math and don't quite understand this. I need to figure out if I take a tax refund of 922.50 an d invest it: What is the balance and total interest if it is invested for 20 years at an interest rate of 8% and is compunded semi-annually? This is all so confusing to me.
Answer by jim_thompson5910(35256)   (Show Source):
You can put this solution on YOUR website! Plug P = 922.50, r = 0.08, n = 2, and t = 20 into the formula below
A = P(1+r/n)^(n*t)
to get
A = 922.50(1+0.08/2)^(2*20)
A = 4,428.94152927157
A = 4,428.94
So you'll have $4,428.94 in the account in 20 years.
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