Question

Please help me to do this problem please. $7,300 at 7% compoundedsemiannually for 3 years

Answer 1

Input data

Principal (P) = 7300

Annual Rate (R) = 7%

Time (t in years) = 3 years

Procedure

First, convert R percent to r a decimal

r = R/100

r = 7%/100

r = 0.07 per year,

Then, solve our equation for A

`A=P(1+r/n)^(nt)`
`A=7300(1+(0.035)/(2))^(2\cdot3)`

A = $ 8,973.56

Summary:

The total amount accrued, principal plus interest, from compound interest on an original principal of $ 7,300.00 at a rate of 7% per year

compounded 2 times per year over 3 years is $ 8,973.56.