Business math word problem #%^*

Question

Find the total value of the investment if I invest $6300 at 6% compounded semiannually for 2 years. 

Answer 1

Using the formula A = P(1 + r/n)^(nt)  where P = principal, r = rate, n = number of times per year, and t = number of years.

 

we get A = 6300(1 + .06/2)^(2*2) = 7090.71

 

I hope this helps.