Aileen deposited money into an account in which interest is compounded semiannually at a rate of 2.1%.

How much did she deposit if the total amount in her account after 3 years was $3952.08, and she made no other deposits or withdrawals?

Question

Aileen deposited money into an account in which interest is compounded semiannually at a rate of 2.1%.

How much did she deposit if the total amount in her account after 3 years was $3952.08, and she made no other deposits or withdrawals?

anonymous · Answer

what is 2.1% of $3952.08?

anonymous · Answer

do you know how to do this?

anonymous · Answer

3952.08* (2.1/100)

3952.08 * .021

anonymous · Answer

=82.99

anonymous · Answer

So, the first semiannual increase would be 3952.08 + 82.99.

anonymous · Answer

And because it's a compounded rate, start increasing by 2.1% from there, nt from the original amount.