Question

If $3,000 is deposited at the end of every six months into an account that earns 10% semiannually, find the amount after 10 years.

Answer 1

$66,000

Explanation:

if they earn 6,000 every year and another $600 through interest, add 6,000 + 600 = 6,600 x 10 = $66,000.

Answer 2

7959.83

Explanation:

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

Where A is the amount in the account

P is the principal

r is the rate

n is the number of compoundings per year

t is the years

A =3000 ( 1+.10/2)^ 2*10

A =3000 ( 1+.05)^ 20

=7959.83