Chris L.

# can someone help? I somehow am getting the wrong answer

Ok... Here is the question:

When John was 10 years old, his grandmother invested $1,000 for him, at a 7% compounded semi-annually. a) How much will the investment be worth on John's 18th birthday? This is what I've gathered but I saw the answer provided and I'm way off? P = 1000 I = 7% semi = 0.035 n = 8×2 = 16 I chose 8 because it started at 10 years, and we're looking 8 years later. A = P(1+I)n A = 1000(1+0.035)16 A = 1000(1.035)16 A = 1000(1.73398603) A = 1733.98603 A = 1733.99 The answer I was provided with is:$3450.27

How am I so far off?!

Mark M.

tutor
You used the correct formula and data. I got the same amount. Ask whomever provided the other number to verify.
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