SOLUTION: how do you show your work on this problem? jimmy invest $4,000.00 in an account that pays 5% annaual interest,componded semiannually . what is his balance, to the nearest cent at

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Question 954645: how do you show your work on this problem?
jimmy invest $4,000.00 in an account that pays 5% annaual interest,componded semiannually . what is his balance, to the nearest cent at the end of 10 years?
Answer by josgarithmetic(39630) About Me  (Show Source):
You can put this solution on YOUR website!
Exponential growth. The number of compoundings in 10 years will be 20, as semiannually.

The rate per period is 0.05%2F2=0.025.
The balance will be 4000%5E%281.025%5E20%29. You can work through the pattern year by year
if you want to start simpler and work upward to the pattern.

First period, 4000%2A1.025.
Second period for the first year, 4000%2A1.025%2A1.025.
All twenty periods for the ten years, 4000%2A%281.025%29%5E20.

You could use log table or scientific calculator to help with computing that result.

$6554.5 to nearest half dollar