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24 November, 05:56

A $3,500 principal earns 3% annual interest, compounded semiannually (twice per year). After 20 years, what is the balance in the account?

a. $7,700.00 b. $4,713.99 c. $5,600.00 d. $6,349.06

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  1. 24 November, 06:21
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    How many semiannual periods are there in 20 years ... 20*2 = 40

    FW = PW (1+i) ^N

    FW = $3500 (1+0.03) ^40

    solve for FW

    (sorry no calculator on me)
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