Homework Help: ALGEBRA

Posted by Monic on Saturday, May 19, 2012 at 7:54pm.

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.)

ALGEBRA - Henry, Sunday, May 20, 2012 at 6:59pm
P = Po(1+r)^n.

r = (4.5%/2) / 100% = 0.0225=Semi-annual % rate expressed as decimal.

n = 2Comp./yr * 13yrs. = 26 Compounding
periods.

P = 835(1.0225)^26 = $1489.13.

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