An account is opened with an initial deposit of 2,500 and earns 1.8% interest compounded semi-annually.What will the account be worth in 30 years?Round your answer to the nearest cent.

Solution

An account is opened with an initial deposit of 2, 500 and earns 1.8% interest compounded semi-annually.What will the account be worth in 30 years?Round your answer to the nearest cent.

Solution

Amount : 4279.67

Solution steps

Translate the problem into an equation:

A = 2500 (1 + \frac{0.018}{2})^{2 \cdot 30}

2500 (1 + \frac{0.018}{2})^{2 \cdot 30} = 4279.66704 \dots

Round to the nearest hundredth:

4279.67

Amount : 4279.67

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