Chris L.

asked • 8d

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?!


8850b6cd e12c 4532 90c8 8137a505b3c4

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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