Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

$800 is deposited in an account that pays 9% compounded semi-annually. Find the balance after 4 years.

Sagot :

The formula for compound interest is the following:

A=P(1+r/n)^nt
A=accumulated amount (what we're looking for)
P=Principal amount (initial amount). $800 in this case
r=rate. 0.09 in this case which we get from converting 9% to decimal by dividing by a 100.
n=number of times interest is compounded. In this case semi-annually which means 2
t=time. In this case 4 years
Let's calculate:
A=800(1+0.09/2)^(2*4)
A=800(1+0.045)^8
A=800(1.045)^8
A=800(1.42210061284)
A=1137.68049027
Let's round to the hundredth place (to represent cents) since the amount represents money.
Answer=The balance after 4 years will be $1,137.68

Answer:

Principal = $ 800

Time = 4 years

Rate of Interest = 9% compounded Semi Annually

          [tex]=\frac{9\pr}{2}[/tex]

Time = 4× 2=8 periods

As, we have to find balance after 4 years, so we will use the formula for amount in terms of Compound interest.

Amount(A)

      [tex]A=P[1+\frac{R}{100}]^n\\\\ A=800\times [1+\frac{9}{200}]^8\\\\ A=800 \times [\frac{209}{200}]^8\\\\ A=800 \times (1.045)^8\\\\ A=800 \times 1.422\\\\ A=1137.680[/tex]

Balance after 4 years = $ 1137.68

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.