Question

If $580 is invested in an account that earns annual interest of 3.5%, compounded semiannually what will the account balance after 10 years? (Round your answer to the nearest cent.)

Answer 1

\[A=P(1+r)^{t}\]
In the basic equation above:
A = amount after time t
P = principal
r = interest rate as a decimal
t = time
Substituting and keeping in mind that the semiannual interest rate is 0.035/2 and t = 20 semiannual periods
\[A=580(1+\frac{0.035}{2})^{20}\]