A customer deposits $12,700 into an account. His account will earn an interest rate of 8.8% compounded semiannually for 1 year. How do you set up the problem using the formula A=P(1+r)t
(t is an exponent)

Question

A customer deposits $12,700 into an account. His account will earn an interest rate of 8.8% compounded semiannually for 1 year. How do you set up the problem using the formula A=P(1+r)t
 (t is an exponent)

anonymous · Answer

Semiannually means twice a year so t=2.
P is the original amount of money.
R is the interest rate  0.088.
A is the final amount you are looking for.