how do you do it

Question

Susan deposited $4000

 into an account with 5.5%

 interest, compounded semiannually. Assuming that no withdrawals are made, how much will she have in the account after 3

 years?Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

This is how you can solve this problem

1. First determine which equation you need. Given that the amount is compounded semiannually(2 times a year), the general compound interest formula is needed.
2. General Interest Compound Formula: A = P( 1+r/n)^nt
3. A (Amount) => the final amount for any calculated time period
4. P (Principle) => the initial amount deposited/invested/etc.
5. r => the interest rate
6. n => the number of times a year that the amount is compounded
7. t => how many years the amount is deposited/invested/etc. for
8. Secondly, you find your values from the information .
9. A = ?
10. P = $4,000
11. r = .055 (%5.5 in decimal form)
12. n = 2
13. t = 3
14. Lastly, plug in your values to solve for A.
15. A = $4,000(1+.055/2)^2*3 = 4707.0734 or about $4707.07

Answer 2

A = 4000(1 + 0.055/2)⁽²⁾⁽³⁾

Can you calculate and answer?^