Problema Solution
Antonio invests $3,000, at 10% interest, compounded semiannually for 12 years. Use the compound interest formula to calculate the compound amount for his investmen
Answer provided by our tutors
The formula for the compound amount is
A = P (1 + (r/n))^ (n*t)
P = $3,000
r = 0.1 (10% interest)
n = 2 (interest compounded semiannually)
t = 12 years
A = 3000*((1 + (0.10/1))^24)
A = $9676 approximately
After 12 years the compound amount will be $9,676.