Find the amount of money in the account at the end.
$1000.00, 4 years,
7% compounded semi-annually
A=P(1+r/n)^nt
r=0.07, t=4, P=$1000.00, n=2
A=P(1+r/n)^nt
A=$1000.00(1+0.07/2)^2-4
A=$1000(1.035)^8
A=$1000(1.316809037)
A=$1,316.809037
My answer is: A=$1316.81 is this right?
http://www.money-zine.com/Calculators/Retirement-Calculators/Compound-Interest-Calculator/
Yes.
Yes, your answer is correct. The formula you used, A=P(1+r/n)^nt, is the compound interest formula where A represents the amount of money in the account at the end, P is the initial principal amount, r is the interest rate, n is the number of times that interest is compounded per year, and t is the number of years.
In this case, the initial principal amount (P) is $1000.00, the interest rate (r) is 7% or 0.07, the number of times interest is compounded per year (n) is semi-annually, which means twice a year or 2, and the number of years (t) is 4.
Plugging these values into the formula, we have:
A = $1000.00 * (1 + 0.07/2)^(2*4)
A = $1000.00 * (1.035)^8
Calculating this, we find that A is approximately $1316.809037. Rounding to two decimal places, the amount of money in the account at the end is $1316.81. Well done!