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Sam Monte deposits \$21,500 into Legal Bank which pays 6 percent interest that is compounded semiannually. By using the table in the handbook, what will Sam have in his account at the end of 6 years?

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What handbook???

• Business math -

The formula for compound interest is:

A = P(1 + r/n)^(nt), where A is the total amount, P is the principal, t is the time in years, r is the interest rate, and n is how many times a year it is compounded.

A = 21,500(1 + 0.06/2)^(2*6)

Solve from there.

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He borrowed \$500 for seven months and paid 53.96 in interest. what was the rate of interest?

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22

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