Question

Mariel deposited ₱6,500.00 in an account that offers 5% interest compounded semi-annually. How much money is in his account at the end of five years?​

Answer 1

The amount is 8,322

Explanation:

To get this , we are going to use the compound interest formula

A = P( 1 + r/n)^nt

A is the amount we are calculating

P is the amount deposited = 6,500

r is the interest rate = 5% = 5/100 = 0.05

n is the number of times per year the interest is compounded

= 2 since it is semi-annually

t is the number of years = 5

Substituting these values, we have it that ;

A = 6,500(1 + 0.05/2)^10

A = 6,500(1.025)^10

A = 8,322