posted by Monic on .
If $835 is invested in an account that earns annual interest of 4.5%, compounded semiannually, what will the account balance be after 13 years? (Round your answer to the nearest cent.)
P = Po(1+r)^n.
r = (4.5%/2) / 100% = 0.0225=Semi-annual % rate expressed as decimal.
n = 2Comp./yr * 13yrs. = 26 Compounding
P = 835(1.0225)^26 = $1489.13.