Asked by Cosumer math

When Greg was born, his grandmother put $5000 in a savings account for his college expenses. It was compounded at 2.5 percent semiannually, and left in the account 18 years. How much was in the account? Round to the nearest dollar.

Answers

Answered by Piwo
Use the formula:
A=P(1+i)^n
A=?
P=$5000
i=2.5/2
=1.25/100
=0.0125
n=2*18=36
now we substitute:
A=5000(1+0.0125)^36
=5000(1.0125)^36
=$7819.72
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