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A $3,500 principal earns 3% annual interest, compounded semiannually (twice per year). After 20 years, what is the balance in the account? a. $7,700.00 b. $4,713.99 c. $5,600.00…

A $3,500 principal earns 3% annual interest, compounded semiannually (twice per year). After 20 years, what is the balance in the account? a. $7,700.00 b. $4,713.99 c. $5,600.00…
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1 vote
A $3,500 principal earns 3% annual interest, compounded semiannually (twice per year). After 20 years, what is the balance in the account?

a. $7,700.00 b. $4,713.99 c. $5,600.00 d. $6,349.06

asked
User Tulsi Kumar
by
8.1k points

1 Answer

3 votes
how many semiannual periods are there in 20 years... 20×2 = 40

FW = PW(1+i)^N
FW = $3500(1+0.03)^40

solve for FW
(sorry no calculator on me)
answered
User Proxi
by
7.7k points
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