Question

Find the balance in the account.

$1,600 principal earning 7%, compounded semi-annually, after 33 years


a. $14,920.54
b. $15,494.70
c. $112,992.00
d. $4,979.11

Answer 1

Total = Principal * (1 + rate/n)^n*years
where n is the number of compounding periods per year.
Total = 1,600 * (1.035)^66
Total = 1,600* 9.6841852012
Total = 15,494.70
Answer is b.

Answer 2

A=1,600×(1+0.07÷2)^(2×33)
A=15,494.70