Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Amount after 5 years is 1209.51
Explanation:Principal = P = 900
rate = r = 6% = 0.06
time = t = 5 years
n = number of times compounded in a year
n = semi -annual = twice in a year
n = 2 times
FV = future value = amount after 5 years
We would apply the compound interest formula:
[tex]FV\text{ = P(1 +}\frac{r}{n})^{nt}[/tex]inserting the values into the formula:
[tex]\begin{gathered} FV\text{ = }900(1\text{ + }\frac{0.06}{2})^{2\times5} \\ FV=900)(1+0.03)^{10} \end{gathered}[/tex][tex]\begin{gathered} FV=900(1.03)^{10} \\ FV\text{ = 900}(1.3439) \\ FV\text{ = 1209.51} \end{gathered}[/tex]
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
