Question

Will fan and medal

Answer 1

whats the question?

Answer 2

A $6000 principal earns 8% interest compounded semiannually twice per year. After 35 years what is the balance in the account.
A. $22,800.00
B. $39,600.00
C. $88,712.07
D. $93,429.71

Answer 3

Semiannually means it is compounded twice per year

Answer 4

This is compound interest, and it's compounded semiannually, it actually means the effective interest rate is 4% for every semi-annul, or half-year

Answer 5

So, if there are 35 years, how many half-years?

Answer 6

This is the formula:

A = P[1+(r/n)]^nt

A = The final amount
P = Original amount (6,000)
r = the rate as a decimal (.08)
n = number of times per year (2)
t = times (35)

So plug in those numbers into that formula where they belong, and you will have your answer

Answer 7

A = 6,000[1+(.08/2)]^(2)(35)

Answer 8

\[P(1+\frac{ r }{ m})^{mn}\]

Answer 9

A = 6,000(1.04)^70

Answer 10

Thats a big number

Answer 11

So first raise 1.04 to 70, which is 15.571618350240578651327623431966 and then some.

Now multiply this exact number by 6,000 (the last step) and you get:
93429.710101443471907965740591796 (and more)

This rounds to about $93,429.71

I hope this helped you :)

Answer 12

You are amazing!! Thank you so much!!

Answer 13

No problem :)