Answered

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If $1.35 is invested in an
account, find the amount of
money in the account after
10 years if it earns 1.15%
interest compounded semi-
annually.

Sagot :

snog

Answer:

$1.51 is in the account after 10 years.

Step-by-step explanation:

Step 1: Identify the Type of Problem

We can see that this is a compound interest problem due to the phrase "earns 1.15% interested compounded" in the problem.

The formula for compound interest is as follows:

[tex]A=P(1+\frac{r}{n})^{n*t}[/tex] where:

  • A = final amount
  • P = principal amount (in other words, the initial or first investment)
  • r = interest rate (as a decimal)
  • n = number of times interest is compounded per year
  • t = time (in years)

Step 2: Identify what we Know

Now that we have the formula we'll be working with, let's see what we know. From the problem, we can see:

  • A = ? (this is what we are solving for)
  • P = $1.35
  • r = 1.15% → 0.0115
  • n = 2 (semi-annually means twice a year)
  • t = 10 years

Step 3: "Plug and Chug"

Now, all we have to do is substitute the above values into our formula. Doing so, we get:

[tex]A=1.35*(1+\frac{0.0115}{2})^{2*10} \\= \bf \$1.51[/tex]

(Note: Since the answer is an amount of money, I have rounded to the hundreths place.)

Hope this helps!

To learn more about compound interest, check out the following question:

  • https://brainly.com/question/21270833
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