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If $425 is invested in an account that earns annual interest of 7.5%, compounded semiannually, what will the account balance be after 11 years? (Round your answer to the nearest cent.)
$ 1

  • math - ,

    P = Po(1+r)^n.

    Po = $425.

    r = (7.5%/2) / 100% = 0.0375 = Semi-annual rate expressed as a decimal.

    n = 2Comp/yr * 11yrs = 22 Compounding
    periods.

    Plug the above values into the given Eq.

    Answer: P = $955.27.

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