Question

You invest $720 in an account that has an annual interest rate of 6.2%, compounded semianually. How much money will be in the account after 5 years?

Answer 1

This time P = 720, r = 0.062, n = 2 (semiannually means twice a year) and t = 5

Answer 2

so you'll have

A = 720(1+0.062/2)^(2*5)

Answer 3

So to start: A= 720(1.031)^10

Answer 4

very good

Answer 5

then what?

Answer 6

A= $977

Answer 7

you nailed it, nice job

Answer 8

Thank you! =)

Answer 9

you're welcome