Question 371331
how much money will there be in an account at the end of five years if $14000 is deposited at 4% interest compounded semi-annually? ( assume no withdrawals are made.)
:
Use the compound interest formula
A = {{{p(1+(r/n))^nt}}}
Where
A = the resulting amt after t years
p = initial amt (14000)
r = interest rate in decimals (.04
n = no. of times compounded per year (2)
t = no. of yrs (5)
:
A = {{{14000(1+(.04/2))^(2*5)}}}
A = {{{14000(1.02)^10}}}
A = {{{14000*1.218994}}}
A = $17,065.92