Question

An account is opened with an initial deposit of $700 and earns 3.3% interest compounded semi-annually.

What will the account be worth in 3 years? Round your answer to the nearest dollar.

Answer 1

Explanation:

we can use this formula:

FV = P * (1 + r/n)^(n*t)

Substitute:

FV = 700 * (1 + 0.033/2)^(2*3)

FV = 700 * 1.035^6

FV = 700 * 1.226

FV = $858.20

Rounding this value to the nearest dollar gives us $858. So, the account will be worth $813 in 3 years when rounded to the nearest dollar.