Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

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
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.