Question
find the total amount in the compound interest amount.
$6350 is compounded semiannually at a rate of 18% for 16 yrs. (round to the nearest hundredth as needed)
$6350 is compounded semiannually at a rate of 18% for 16 yrs. (round to the nearest hundredth as needed)
Answers
Henry
Pt = Po(r + 1)^n.
r = ( APR / 2 ) / 100,
r = (18 / 2) / 100 = 0.09 = Semi-annual
rate expressed as a decimal.
n = 2 comp/yr * 16 yrs = 32 comp. periods.
Pt = Po(r + 1)^32,
Pt = 6350(1.o9)^32,
Pt = 6350 * 15.7633 = 100097.14 = total after 16 yrs.
Int. = Pt - Po = 100097.14 - 6350 = 93747.14.
r = ( APR / 2 ) / 100,
r = (18 / 2) / 100 = 0.09 = Semi-annual
rate expressed as a decimal.
n = 2 comp/yr * 16 yrs = 32 comp. periods.
Pt = Po(r + 1)^32,
Pt = 6350(1.o9)^32,
Pt = 6350 * 15.7633 = 100097.14 = total after 16 yrs.
Int. = Pt - Po = 100097.14 - 6350 = 93747.14.