Question 591829
{{{A=P(1+r/n)^(n*t)}}} Start with the compound interest formula



{{{A=3000(1+0.05/2)^(2*4)}}} Plug in {{{P=3000}}}, {{{r=0.05}}}, {{{n=2}}} (since we're compounding <u>twice</u> a year) and {{{t=4}}}.



{{{A=3000(1+0.025)^(2*4)}}} Evaluate {{{0.05/2}}} to get {{{0.025}}}



{{{A=3000(1.025)^(2*4)}}} Add {{{1}}} to {{{0.025}}} to get {{{1.025}}}



{{{A=3000(1.025)^(8)}}} Multiply {{{2}}} and {{{4}}} to get {{{8}}}.



{{{A=3000(1.21840289750992)}}} Evaluate {{{(1.025)^(8)}}} to get {{{1.21840289750992}}}.



{{{A=3655.20869252975}}} Multiply {{{3000}}} and {{{1.21840289750992}}} to get {{{3655.20869252975}}}.



{{{A=3655.21}}} Round to the nearest hundredth (ie to the nearest penny).



So there is <font color="red">$3655.21</font> in the account after 4 years (where $3000 is invested at an interest rate of 5% each year and it's compounded semiannually).