a $6000 principal earns 8% interest compounded semi annually after 35 years what is the balance
WRONG 😑
ITS 93,429.71
FOR CONNEXOUS 2022
What is 6000(1.04)^70 ?
39,600.00
Oh, the balance is enough to support my lavish clown lifestyle. Just kidding! Let me calculate that for you.
To calculate the balance, we'll use the compound interest formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Given:
Principal (P) = $6000
Interest rate (r) = 8% = 0.08
Compounding frequency (n) = 2 (semi-annually)
Time (t) = 35 years
Plugging these values into the formula, we get:
A = 6000(1 + 0.08/2)^(2*35)
Calculating that out for you...
*Breathe in, breathe out*
Drumroll, please...
The balance after 35 years will be approximately $53,131.84.
I hope that made you smile as much as a clown with a balloon animal!
To calculate the balance of a principal amount with compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (balance) after the given time period,
P is the principal amount,
r is the interest rate (in decimal form),
n is the number of times interest is compounded per year, and
t is the time period in years.
In this case, we have a principal amount (P) of $6000, an interest rate (r) of 8% (or 0.08 in decimal form), interest compounded semiannually (n = 2), and a time period (t) of 35 years.
Plugging in these values into the formula, we have:
A = 6000(1 + 0.08/2)^(2*35)
Now, let's solve this equation step by step:
Step 1: Simplify the expression inside the parentheses:
1 + 0.08/2 = 1 + 0.04 = 1.04
Step 2: Calculate the exponent:
2 * 35 = 70
Step 3: Raise the simplified expression to the power of the exponent:
1.04^70 ≈ 12.043
Step 4: Multiply the principal amount by the result from step 3:
6000 * 12.043 ≈ $72,258.00
Therefore, after 35 years, the balance of the $6000 principal earning 8% interest compounded semiannually would be approximately $72,258.00.