Asked by john

$18,500 at 4.5% compounded semiannually for 5 years

Answers

Answered by Damon
18500 * (1 + .045/2)^10
Answered by helper
$18,500 at 4.5% compounded semiannually for 5 years

A(t) = P(1 + r/n)^nt
A(5) = 18500(1 + 0.045/2)^(2(5))
A(5) = 18500(1 + 0.0225)^10
A(5) = 18500(1.0225)^10
A(5) = 18500(1.24920)
A(5) = 23110.26 interest

18,500 + I = total value after 5 yrs
Answered by Damon
I think A(5) is the total value.
Answered by helper
Yes, Damon is right.

A(5) is the total value.

I meant to put,
$18,500 + 4610.26 Interest = $23,110.26
after 5 years
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