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Karen Gaines invested 12,000 in a money market account with an interest rate of 2.25% compounded semiannually. Seven years later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account?

Solution

Karen Gaines invested 12, 000 in a money market account with an interest rate of 2.25% compounded semiannually. Seven years later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account?

Solution

Amount : 14034.62

Solution steps

Translate the problem into an equation:

A = 12000 (1 + \frac{0.0225}{2})^{2 \cdot 7}

12000 (1 + \frac{0.0225}{2})^{2 \cdot 7} = 14034.62234 \dots

Round to the nearest hundredth:

14034.62

Amount : 14034.62

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Karen Gaines invested ​12,000 in a money market account with an interest rate of 2.25​% compounded semiannually. Seven years​ later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the​ account?

Solution

Solution

Popular Examples

Karen Gaines invested 12,000 in a money market account with an interest rate of 2.25% compounded semiannually. Seven years later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account?