$1600 principal earning 7% compounded semi annually after 33 years

Answer 1

To calculate the future value of the principal, we will use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A is the future value of the principal
P is the principal amount
r is the interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years

Given:
P = $1600
r = 7% = 0.07
n = 2 (compounded semiannually)
t = 33 years

Plugging these values into the formula:

A = 1600(1 + 0.07/2)^(2*33)

A = 1600(1 + 0.035)^(66)

A = 1600(1.035)^(66)

A ≈ $6,576.46

So, after 33 years, a $1600 principal earning 7% compounded semiannually would have a future value of approximately $6,576.46.