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If $450 is invested in an account that earns annual interest of 3.5%, compounded semiannually, what will the account balance be...Asked by Anonymous
If $795 is invested in an account that earns annual interest of 5.5%, compounded semiannually, what will the account balance be after 5 years? (Round your answer to the nearest cent.)
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Answered by
Henry
Pt = Po(1+r)^n.
r = (5.5%/2) / 100% = 0.0275 = Semi-
annual % rate expressed as a decimal.
n = 2comp./yr * 5yrs = 10 Compounding periods.
Pt = 795(1.0275)^10 = $1042.76.
r = (5.5%/2) / 100% = 0.0275 = Semi-
annual % rate expressed as a decimal.
n = 2comp./yr * 5yrs = 10 Compounding periods.
Pt = 795(1.0275)^10 = $1042.76.
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