Michael deposits $35,000 today in his bank account. calculate the approximate amount he will have at the end of six years if interest is 10% per year and is compounded semiannually.?

Question

Mathematics

Marquise Woodard

8 September, 08:36

Michael deposits $35,000 today in his bank account. calculate the approximate amount he will have at the end of six years if interest is 10% per year and is compounded semiannually.?

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Answers (1)

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Molly · Answer 1

Compound interest is given by:

A=p (1+r / (100*n)) ^ (nt)

where;

A=future amount

p=principle amount=$35,000

r=rate=10%=0.1

n=number of terms=2

t=time=6

Hence,

A=35,000 (1+0.05) ^ (2*6)

A=35000 (1.05) ^12

A=$62,854.97

The amount of money after 6 years will be $62,854.97