SOLUTION: Find the amount owed at the end of 7 years of $3100 is loaned at a rate of 5% compounded semiannually.

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Question 956608: Find the amount owed at the end of 7 years of $3100 is loaned at a rate of 5% compounded semiannually.
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
Find the amount owed at the end of 7 years of $3100 is loaned at a rate of 5% compounded semiannually.
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Compound Interest Formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding periods per year, A=amt after t-years
For given problem:
P=3100
r=.05
n=2
t=7
..
A=3100(1+.05/2)^(2*7)
A=3100(1.025)^14
A≈4380
amount owed at the end of 7 years ≈$4,380