math

Romy invested $5,000 into an account that pays 5% compound semi-annually. He intended to keep the account untouched for five years. However, after three years he had to withdraw $3,000. Find the amount left in the account five years from the time he made his investment.

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  1. So you have the three years + what is left at the two years
    A=p(1+i)^n for the first three years BUT the rate was given for 5 years
    A=5000(1 +.05/2)^3x2
    A=5000(1.025)^6
    A=5000(1.159693418)
    A=5798.85 after the three years...
    Then he took out 3000 so the new Principal is 2798.47
    using A=p(1+i)^n
    You figure out the next 2 years :)

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