Find the balance in the account after the time interval. Use the compound interest formula: A = P (1+ r/n ) ^(n.t)

Question

   ​​$7,300 at 7% compounded semiannually for 3 years. ​

=$  (round to two decimal places).

Answer 1

the underlying compound interest formula that you want to use to solve this one is

A = P(1 + r/n)^(nt)

for this scenario that means taking

A = 7300(1 + 0.07/2)^(2*3)

A = 7300(1.035)^6

A = 8973.56

meaning that the end balance in the account after 3 years here is $8,973.56

Answer 2

A = P (1 + r/n)^nt

  

$7,300 at 7%

P = 7300

r = .07 (7%)

compounded semiannually for 3 years.

n = 2 (semiannual; twice a year)

t = 3

A = 7300 (1 + .07/2)²⁽³⁾