Answered

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find the total and the interestprincipal $3200rate 5 1/2 yearscompounded semiannually for 6 years

Sagot :

Remember that

The compound interest formula is equal to

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

P=$3,200

r=5 1/2 %=5.5%=0.055

t=6 years

n=2

substitute the given values

[tex]A=3,200(1+\frac{0.055}{2})^{2\cdot6}[/tex]

A=$4,431.31 ------> the total

Find out the interest

I=A-P

I=4,431.31-3,200

I=$1,231.31 -----> interest

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