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Suppose that 2,000 is invested at a rate of 3.7% , compounded semiannually. Assuming that no withdrawals are made, find the total amount after 8 years.

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Walter B. | Success-Based Tutor Specializing in Your StudentSuccess-Based Tutor Specializing in Your...
4.9 4.9 (540 lesson ratings) (540)
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The formula is Future Value = Present Value * (1+int rate)n
 
Since the amount is compounded semi-annually, the per period interest rate is 3.7%/2 or 1.85%/period and the number of compounding periods is 8*2 or 16
 
Future Value = 2,000 * (1+.0185)16 = 2000* 1.018516 = 2000* 1.34084 = 2,681.68
Andy C. | Math/Physics TutorMath/Physics Tutor
4.9 4.9 (21 lesson ratings) (21)
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2000 ( 1 + 0.037/2)^16 =
 
2681.67