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?!