Question

$1,600 principal earning 7%, compounded semi-annually, after 33 years.

Someone really explain and go through this with me.

Answer 1

First we should determine what 7% semi-annual equals
annual = (1+.07/2) ^2 = 1.071225
annual interest = 7.1225%

Answer 2

Basically, it depends on using the formulas correctly.

Answer 3

Okay, thank you :)

Answer 4

total = principal*(1+rate)^33
total = 1,600 * (1.071225)^33
total = 1,600 * 9.6841852012
total = 15,494.70
(Double check your work with this calculator: http://1728.org/compint.htm