# Math

posted by .

Find total amount in compound interest account.

\$9000 IS compounded semiannually at a rate of 11% for 20 years

• Math -

round to the nearest hundredths as needed

• Math -

With compound interest, the interest due and paid at the end of the interest compounding period is added to the initial starting principal to form a new principal, and this new principal becomes the amount on which the interest for the next interest period is based. The original principal is said to be compounded, and the difference between the the final total, the compound amount, accumulated at the end of the specified interest periods, and the original amount, is called the compound interest.

In its most basic use, if P is an amount deposited into an account paying a periodic interest, then Sn is the final compounded amount accumulated where

...........Sn = P(1+i)^n

where i is the periodic interest rate in decimal form = %Int./(100m), n is the number of interest bearing periods, and m is the number of interest paying periods per year.

Sn = P(1+i)^n

Sn = 9000(1.055)^40 = \$76,619.78

## Similar Questions

1. ### Math

\$6550 is compounded semianually at a rate of 18% for 18 years. find the total amount in the compound interest account round to the hundredth as needed.
2. ### prealgebra

find the total amount in the compound interest amount. \$6350 is compounded semiannually at a rate of 18% for 16 yrs. (round to the nearest hundredth as needed)
3. ### math

Suppose that \$200 was deposited on 1st Jan 2000 into an account that earned 5% interest compounded semiannually. Suppose further that \$200 was deposited on 1st Jan 2001 into a different account that earned 6% interest compounded semiannually. …
4. ### pre-calculus

find (a) the compound amount and (b) the compound interest for the given investment and annual rate. a. \$5000 for 20 years at 5% compounded annually b. \$700 for 15 years at 7% compounded semiannually.
5. ### Compound interest

Hello My teacher skipped over this and I have no clue how to do this or the equations. Help would be wonderful thank you If 6000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in …
6. ### algebra

\$5650 is compound semiannually at a rate of 16% for 14 years how much is the total amount in the compound interest account?
7. ### Algebra

Show how you substitute the values into the formula, then use your calculator. *Use A = P(1+r/n)nt to find the amount of money in an account after t years, compounded n times per year. *Use I = Prt to find the amount of simple interest …
8. ### math

fine the total amount in the compound interest account?
9. ### Math/Compound Interest

1. Use the compound interest table to find the compound amount earned on a \$5,900 deposit for 10 years at 10% compounded semiannually. _____________________________________ A. 9,610.45 b. 15,654.47 c. 3,710.45 d. 12,375.66 2. Megan …
10. ### math

\$6350 is compounded semiannually at 14% for 12 years. What is the total amount in the compound interest account?

More Similar Questions