Jenny deposited 4000 into an account with 5.7% interest, compounded semiannually. Assuming that no withdrawals are made, how much will she have in the account after 4 years?

Solution

Solution

Amount : 5008.35

Solution steps

Translate the problem into an equation:

A = 4000 (1 + \frac{0.057}{2})^{2 \cdot 4}

4000 (1 + \frac{0.057}{2})^{2 \cdot 4} = 5008.34640 \dots

Round to the nearest hundredth:

5008.35

Amount : 5008.35

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