$18,500 at 4.5% compounded semiannually for 5 years
18500 * (1 + .045/2)^10
$18,500 at 4.5% compounded semiannually for 5 years
A(t) = P(1 + r/n)^nt
A(5) = 18500(1 + 0.045/2)^(2(5))
A(5) = 18500(1 + 0.0225)^10
A(5) = 18500(1.0225)^10
A(5) = 18500(1.24920)
A(5) = 23110.26 interest
18,500 + I = total value after 5 yrs
I think A(5) is the total value.
Yes, Damon is right.
A(5) is the total value.
I meant to put,
$18,500 + 4610.26 Interest = $23,110.26
after 5 years
To calculate the compound interest on $18,500 at an interest rate of 4.5% compounded semiannually for 5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal amount (initial investment)
r is the annual interest rate (in decimal form)
n is the number of times interest is compounded per year
t is the number of years
In this case:
P = $18,500
r = 4.5% or 0.045 (in decimal form)
n = 2 (since it is compounded semiannually, which means twice a year)
t = 5 years
Now, let's plug these values into the formula and calculate the final amount:
A = 18500(1 + 0.045/2)^(2*5)
A = 18500(1 + 0.0225)^(10)
A = 18500(1.0225)^(10)
A ≈ $22,063.34
Therefore, the final amount after 5 years would be approximately $22,063.34.