SOLUTION: If you invest $2,000 at a 5% interest, compounded semiannually, how much will you have in 10 years?

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Question 817155: If you invest $2,000 at a 5% interest, compounded semiannually, how much will you have in 10 years?
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
If you invest $2,000 at a 5% interest, compounded semiannually, how much will you have in 10 years?
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compound interest formula: A=P(1+i)^n, P=initial investment, i=interesr rate per period, n=number of periods, A=amount after n-periods.
For given problem:
P=2000
i=.05/2=.025
n=2*10=20
..
A=2000(1+.025)^20
A=2000(1.025)^20
A=$6554(rounded)
how much will you have in 10 years? $6554