jamisenhenry
Answered

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Your interest rate is compounded semiannually.
Beginning Balance: $1,000
Annual Interest Rate: 8%
What will your ending balance be after one year?

Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$1000\\ r=rate\to 8\%\to \frac{8}{100}\dotfill &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semiannually, thus twice} \end{array}\dotfill &2\\ t=years\dotfill &1 \end{cases} \\\\\\ A=1000\left(1+\frac{0.08}{2}\right)^{2\cdot 1}\implies A=1000(1.04)^2\implies A=1081.6[/tex]

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