Question

1. Bill Ferny invested $51,300 at 4% interest compounded semiannually for 8 years. What is his ending

balance?​

Answer 1

The ending balance in the account is $70383.6

Explanation:

Given as :

The invested principal = $51,300

The compounded interest semiannually = 4%

The time period = 8 years

Now from compounded method ,

`Amount = Principal * (1 + (Rate)/(2* 100))^(2* Time)`

Or,
`Amount = $51,300 * (1 + (4)/(2* 100))^(2* 8)`

Or, Amount = $51,300 ×
`(1.02)^(16)`

Or, Amount = $51,300 × 1.372

∴ Amount = $70383.6

Hence, The ending balance in the account is $70383.6 Answer