Raymond B. answered 09/10/22
Math, microeconomics or criminal justice
A=P(1+r/n)^nt where P = investment= $10000,
r=annual interest rate=2%=.02,
n= number of compounding periods per year=2,
t = number of years = 3.5
a) 3 1/2 years at 2% compounded semi-annually
A = 10,000(1+.02/2)^2(3.5)
= 10000(1.01)^7
= 10000(1.072135352)
= $10,721.35 rounded off to nearest cent
b) 4.5% for another 3.5 years. total 6 years
A=10721.35352(1.045/12)^12(3.5)
= 10721.35352(1.00375)^42
= 10721.35352(1.170235983)
=$12,546.51 rounded off to nearest cent
amount it grew in the last 3 1/2 years
= 12,546.51 - 10,721.35
= $1,825.16
amount it grew in 1st 3 1/2 years
= $721.35
total growth over 6 years
=$2,546.51