A $1600 principal earns 7% annual interest, compounded semiannually. What is the balance after 33 years?

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asked Jul 12, 2019 216k views

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Dersvenhesse · Answer 1 · 2019-07-18T16:21:16+0000

Use the future value formula.
FV = P(1 +r/n)^(nt)
FV = 1600*(1 +.07/2)^(2*33)
FV = 1600*1.035^66 ≈ 15,494.70

The balance after 33 years will be $15,494.70

A $1600 principal earns 7% annual interest, compounded semiannually. What is the balance after 33 years?

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