Q:

Find the balance in the account. $1,400 principal earning 6%, compounded semi-annually, after 10 years$2,507.19$29,680.00$2,528.56$1,468,006,400.00

Accepted Solution

A:
Answer: The balance in the account is $2528.56 after 10 years .Step-by-step explanation:Formula [tex]Amount = P (1 +\frac{r}{2})^{2t}[/tex]Where P is the principle , r is the rate of interest in the decimal form and t is the time in years .As given $1,400 principal earning 6%, compounded semi-annually, after 10 years .P = $1400 6% is written in the decimal form [tex]= \frac{6}{100}[/tex]= 0.06 r = 0.06 t = 10 years Put all the values in the formula [tex]Amount = 1400(1 +\frac{0.06}{2})^{2\times 10}[/tex][tex]Amount = 1400(1 +0.03)^{20}[/tex][tex]Amount = 1400(1.03)^{20}[/tex]Amount = 1400 × 1.80611 Amount = $2528.56 Therefore the balance in the account is $2528.56 after 10 years .