College algebra

Question

use the compound interest A=P(1+r/n)rt to solve the problem given round answer to the nearest cent. Find the accumulated value of an investment of 15,000 for 7 years at an interest rate 6.5% if the money is compounded semiannually

Answer 1

the underlying compound interest formula that you want to use on this one is

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

for this scenario that means taking

A = 15000(1 + 0.065/2)^(2*7)

A = 15000(1.0325)^14

A = 23,742.11

meaning that the accumulated value after 7 years here is $23,742.11

Answer 2

First of all, the equation in the problem is wrong. But once you have the correct equation, you just plug in the given information into the right variable. The only curveball will be to remember to make your percent into a decimal so your answer isn't 5 bajillion. Also, know that semiannual means twice a year (ie n=2). Please watch the video for a thorough explanation. Thanks :)