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?!

## 1 Expert Answer

Patrick B. answered • 8d

Math and computer tutor/teacher

YOU ARE CORRECT !!!! CONGRATULATIONS

THEY ARE USING 18 YEARS, WHICH IS WRONG.

IT IS ONLY SUPPOSED TO BE 8 YEARS

1000*(1.035)^36 = 3450.27

SHOW YOUR TEACHER, AND YOU DESERVE A REWARD!!!

CONGRATULATIONS

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Mark M.

8d