Question 472077


{{{A=P(1+r/n)^(n*t)}}} Start with the compound interest formula



{{{A=200(1+0.055/2)^(2*18)}}} Plug in {{{P=200}}} (the amount invested), {{{r=0.055}}} (the decimal equivalent of 5.5%), {{{n=2}}} (since interest is compounded semiannually)  and {{{t=18}}} (18 years).



{{{A=200(1+0.0275)^(2*18)}}} Evaluate {{{0.055/2}}}} to get {{{0.0275}}}



{{{A=200(1.0275)^(2*18)}}} Add {{{1}}} to {{{0.0275}}} to get {{{1.0275}}}



{{{A=200(1.0275)^(36)}}} Multiply {{{2}}} and {{{18}}} to get {{{36}}}.



{{{A=200(2.65549751736566)}}} Evaluate {{{(1.0275)^(36)}}} to get {{{2.65549751736566}}}.



{{{A=531.099503473132}}} Multiply {{{200}}} and {{{2.65549751736566}}} to get {{{531.099503473132}}}.



{{{A=531.10}}} Round to the nearest hundredth (ie to the nearest penny).



So there will be $531.10 in the account.