Semi-annually means the money is looked at twice a year (for each of the three years), and the interest at 4% is split into 2 (for semi-annually) each year so...
A = P(1 + i)^n
A=4000( 1 + 0.04/2)^(3x2)
....
Solve for the accumulated amount in the account.
An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar.
Can someone help please?
4 answers
but it said compounded annually, so
A=4000( 1 + 0.04)^3
A=4000( 1 + 0.04)^3
OOOOPS! so sorry! I thought it was compounded SEMI-ANNUALLy! So very sorry. Thanks for the proper solution Reiny : )
ohhh ok thank you guys!!!
3 answers