SOLUTION: if $14,000 is invested and compounded semiannually for 6 years at 12%, how much money will be available at the end of the 6 years?

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Question 693208: if $14,000 is invested and compounded semiannually for 6 years at 12%, how much money will be available at the end of the 6 years?
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=14000%281%2B0.12%2F2%29%5E%282%2A6%29 Plug in P=14000, r=0.12 (the decimal equivalent of 12%), n=2 and t=6.


A=14000%281%2B0.06%29%5E%282%2A6%29 Evaluate 0.12%2F2 to get 0.06


A=14000%281.06%29%5E%282%2A6%29 Add 1 to 0.06 to get 1.06


A=14000%281.06%29%5E%2812%29 Multiply 2 and 6 to get 12.


A=14000%282.01219647183555%29 Evaluate %281.06%29%5E%2812%29 to get 2.01219647183555.


A=28170.7506056977 Multiply 14000 and 2.01219647183555 to get 28170.7506056977.


A=28170.75 Round to the nearest hundredth (ie to the nearest penny).

So about $28,170.75 will be in the account in 6 years.