Answer:
$1.51 is in the account after 10 years.
Step-by-step explanation:
Step 1: Identify the Type of Problem
We can see that this is a compound interest problem due to the phrase "earns 1.15% interested compounded" in the problem.
The formula for compound interest is as follows:
[tex]A=P(1+\frac{r}{n})^{n*t}[/tex] where:
- A = final amount
- P = principal amount (in other words, the initial or first investment)
- r = interest rate (as a decimal)
- n = number of times interest is compounded per year
- t = time (in years)
Step 2: Identify what we Know
Now that we have the formula we'll be working with, let's see what we know. From the problem, we can see:
- A = ? (this is what we are solving for)
- P = $1.35
- r = 1.15% → 0.0115
- n = 2 (semi-annually means twice a year)
- t = 10 years
Step 3: "Plug and Chug"
Now, all we have to do is substitute the above values into our formula. Doing so, we get:
[tex]A=1.35*(1+\frac{0.0115}{2})^{2*10} \\= \bf \$1.51[/tex]
(Note: Since the answer is an amount of money, I have rounded to the hundreths place.)
Hope this helps!
To learn more about compound interest, check out the following question:
- https://brainly.com/question/21270833
