Question 1202017
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How much interest is earned in 6 years on $8600 deposited in an account paying 7% interest, 
compounded semiannually? (Round your answer to two decimal places.)
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<pre>
f = p * (1 + r) ^ n


f is the future value
p is the principal (one-time original deposit)
r is the interest rate per time period as a decimal number
n is the number of time periods.


in your problem:


p = 8600
r = 0.07/2 = 0.035 semi-annually
n = 6*2 = 12 semi-annual periods


formula becomes f = {{{8600*(1+0.035)^12}}} = {{{8600*1.035^12}}} = 12995.19 dollars.    <U>ANSWER</U>
</pre>

Solved.


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To see many other similar solved problems on compounded interest accounts, &nbsp;look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compound interest percentage problems</A> 

in this site.