Question

Jimmy invests $7,000 in an account that pays 3% interest compounded semi-annually. What is his balance after 8 years?

Answer 1

$8882.9

Explanation:

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

Given:P=7000, r=(3÷100%)=0.03 , n=2, t=8

A = 7000(1+(.03/2))^(2×8)

A = 7000 (1+0.015)^16

A = 7000 × 1.015^16

A = $8882.9