SOLUTION: If $505 is invested in an account that earns annual interest of 8%, compounded semiannually, what will the account balance be at the end of 3 years? (Round your answer to the neare
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Question 926154: If $505 is invested in an account that earns annual interest of 8%, compounded semiannually, what will the account balance be at the end of 3 years? (Round your answer to the nearest cent.)
You can put this solution on YOUR website! If $505 is invested in an account that earns annual interest of 8%, compounded semiannually, what will the account balance be at the end of 3 years?
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A(t) = P(1+(r/n))^(nt)
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A(3) = 505(1+0.08/2)^(2*3)
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A(3) = 505(1.04)^6 = $638.99
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Cheers,
Stan H.
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