Problema Solution
Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t yr. (Round your answer to the nearest cent.)
P = $1800, r = 7%, t = 7.5, compounded semiannually
Answer provided by our tutors
compound interest formula: A=P(1+r)^t, P=initial investment, r=interest rate/period, A=amount after t periods
For given problem:
r=.07/2=.0.35 (interest rate/period)
t=7.5*2=15 periods
A=1000(1+.035)^15
A = 1675.35