Question

Suppose that $2000 is invested at a rate of 2.2%,compounded semiannually. Assuming that no withdrawals are made, find the amount owed after 10 years.
Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

Here is the compound interest formula: \[\Large A = P(1 + \frac{ r }{ n })^{nt}\]A = Amount at maturity
P = Principal Amount = $2,000
r = Annual interest rate in decimal = 0.022 = 2 (semiannually)
n = compounding period (compounded how many times a year) = 2 (semiannually)
t = years invested = 8 years

Plug the number into the formula and compute A.

Answer 2

That you ill message you if i need any more help

Answer 3

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