Math Desperate for help!
posted by Hilda .
Find the amount in an account if
$2000 is invested at 6.125%,compounded
semianually,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 halfmillion dollars?
Post your work, I will check.
Instead of calculating interest yearbyyear, 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
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