contestada

(Section 5.5)
20. Dak Nardo deposited $350 into a new regular savings account that earns 6.5 percent interest
compounded semiannually. He made no other deposits or withdrawals. What was his amount in
the account at the end of one year? (4 points)

Respuesta :

Samawati

Answer:

$373.10

Explanation:

The principle amount is $350... PV

Interest rates 6.5 % ...r

Duration one year...n

The formula for calculating compound interest

FV = PV x ( 1 + r ) n

Since 6.5 % is compounded twice year:  r becomes 6.5/ 2 and n will n x2

FV = 350(1+0.065 )2

=$350 x 1.06605625

=$350 x 1.066

=$373.10

Otras preguntas

Q&A Education