Suppose that $ 2000 is invested at a rate of 3.6 % , compounded semiannually. Assuming that no withdrawals are made, find the total amount after 6 years.

Question

Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

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

 

A = final amount

p = principal = 2000

r = interest rate = .036

n = #times compounded per year = 2

t = time in years

 

A = 2000(1+.036/2)²⁽⁶⁾

A = 2000(1.018)¹²

 

Just punch into calculator to find the final amount