Question 430373
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If you deposit $2500 in an account paying 4.5% interest compounded semiannually, 
how much will be in the account after 8 years? (Round to the nearest cent)
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        Calculations in the post by @mananth are presented incorrectly.

        I came to bring a correct solution.



<pre>
Principal P = 2500
Interest rate = 4.5% = 0.045 compounded semiannually.
years = 8.


Use the standard formula for the future value

    FV = {{{P*(1+0.045/2)^(2*8)}}} = {{{2500*(1+0.045/2)^16}}} = 3569.05 dollars.


<U>ANSWER</U>.  In 8 years, the account will be $3569.05.
</pre>

Solved.


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I wrote this my post to overlay incorrect formulas in the post by @mananth,
that may confuse a reader.