Posted by **Hilda** on Sunday, February 25, 2007 at 8:16pm.

Find the amount in an account if

$2000 is invested at 6.125%,compounded

semi-anually,for 2 years.

A. $2,256.49

B. $2,252.50

C. $2,324.89

D. $544,757.84

One of these is the correct answer.

I am coming up with (D) 544,757.84

Can you check, because I am probably wrong.

You are wrong. How can one invest 2000 dollars at a modest rate of interest for two years and get a half-million dollars?

Post your work, I will check.

Instead of calculating interest year-by-year, it would be simple to see the future value of an investment using a compound interest formula. The formula for compound interest is:

Pn = P0(1 + I)n

where:

Pn = Value at end of n time periods

P0 = Beginning Value

I = Interest

n = Number of years

## Answer this Question

## Related Questions

- Math Question - Hi! We asked this question last night but we got confused. Find ...
- Math - Find the amount in an account if $2000 is invested at 6.125%, compounded ...
- Math - Find the amount in an account if $2,000 is invested at 6.125%,compounded ...
- math - Find the amount that schould be invested now to accumulate following ...
- Plz Hel, word problem:) - I have tried hard to solve, but I'm stuck.... Let’s ...
- Math - Calculate the present value for $1400 needed in 4 years, invested at 4.2...
- Math - Calculate the present value for $1400 needed in 4 years, invested at 4.2...
- math - Find the balance in an account that has $700 invested at 5.5% for 4 years...
- Math - An initial amount of $2900 is invested in an account at an interest rate...
- mathematic 11 - to save for a motercyle, abdul deposited $2000 into an account ...

More Related Questions