Suppose that 16,000 is deposited for five years at 4% APR. Calculate the interest earned if interest is compounded semiannually. Round your answer to the nearest cent.

Solution

Suppose that 16, 000 is deposited for five years at 4% APR. Calculate the interest earned if interest is compounded semiannually. Round your answer to the nearest cent.

Solution

Interest : 3503.91

Solution steps

Translate the problem into an equation:

19503.91071 \dots = 16000 + I

Solve for

I, 19503.91071 \dots = 16000 + I : I = 3503.91

Interest : 3503.91

Popular Examples

the difference of a number and 2 is 19 The perimeter of a rectangular window is 296 cm. If the width of the window is 57 cm, what is its length?the difference of two numbers is 16. The greater number is 5 less than 4 times the smaller number. find the two numbers The sum of two numbers is 37. The smaller number is 15 less than the larger number. What are the numbers Sanjay opened a savings account and deposited 1,803.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 5 years?