I cant seem to figure this question out :,c

Whitney opened a savings account 25 years ago with a deposit of $4,280.83. The account has an interest rate of 5.4% compounded twice a year. How much interest has Whitney earned?

$11.661.19

$4,511.99

$16,219.97

$11,939.14

Question

I cant seem to figure this question out :,c

Whitney opened a savings account 25 years ago with a deposit of $4,280.83. The account has an interest rate of 5.4% compounded twice a year. How much interest has Whitney earned?

 $11.661.19

 $4,511.99

 $16,219.97

 $11,939.14

anonymous · Answer

$11.661.19

jim_thompson5910 · Answer

katragaddasaichandra's answer is incorrect

anonymous · Answer

but i got that answer

anonymous · Answer

A = P(1 + i/m)^(ym)

jim_thompson5910 · Answer

double check your work

anonymous · Answer

well, the interest rate is stated "per year", and not "per period"

2 periods in a year so the interest rate to use is .054/2

anonymous · Answer

2 periods a year for 25 years comes out to 50 periods entotal

anonymous · Answer

P is your initial investment
i is your nominal interest rate
m is your compounding period
y is your years

To get the total interest,   I = A - P

anonymous · Answer

hence:

P(1+r)^t = P + interest

P(1+r)^t - P = interest

jim_thompson5910 · Answer

you're correct with your reasoning, but the answer isn't 11.661.19

anonymous · Answer

Just follow that formula I gave you and you can't go wrong.

anonymous · Answer

That formula I gave you in my first post gives the total amount.

In my second post, I showed you how to get the total interest.

anonymous · Answer

Good luck to you in all of your studies and thx for the recognition! @NaCl

anonymous · Answer

If you fill out the numbers from that formula:

A = P(1 + i/m)^(ym)

A = (4280.83)(1 + 0.054/2)^(25 x 2)  =  16219.97

Total I = A - P  = 16219.97 - 4280.83 = 11939.14

answer is "D"

anonymous · Answer

Lol @tcarroll010 i got same answer :D

anonymous · Answer

Good job!  Excellent! @nacl

anonymous · Answer

@katragaddasaichandra why you think im here idiot smh.

anonymous · Answer

i am not telling ur idiot

anonymous · Answer

I think @nacl is just saying that he independently did the work on his own and concurred on the answer.  I saw no insult on his part.  He is just saying he tried to do the work, which is commendable, and got the same answer.

anonymous · Answer

Isn't that right, @nacl ?

anonymous · Answer

he did do his work .. but he told me shut up and he deleted the comment .. I still was thankful for his work either way around happy ?

anonymous · Answer

You're a good student and a good person.  Don't give too much thought to negative comments, especially when there is absolutely no basis.  You have a good day and have peace.