Question

Brenda incests $4,848 in a savings account with a fixed rate of 5% compounded 2 times per year. What will the account balance be after 6 years

Answer 1

Explanation:

FV = Future value ( in 6 years)

PV = present Value = $ 4848

Decimal interest per PERIOD =i = .05/2 = .025

Periods = 6years * 2 = n = 12

FV = PV ( 1+i)^n

FV = 4848 ( 1+.025)^12 = $ 6520.02