Question

help please!! a 3500 principal earns 3% interest compounded semiannually after 20 years what is the balance of the account? I have never heard of semi annually before? not sure how to solve

Answer 1

semiannually just means twice a year. so your number of periods is 20 years * 2 = 40 periods

Answer 2

It would be 7,700 in the end.
A = P (1+rt)
A = 3,500 (1+.03*40) = 7,700

Answer 3

thankyou so much