Clark put 3000 in an account that compound 5% interest twice a year. if she left the money in for a year how much should have
Mathematics · Middle School · Mon Jan 18 2021
Answered on
Given:
Principal Amount ( P ) = $3000
Interes Rate ( r ) = 5% or 0.05 ( divide by 100)
Term ( t ) = 1
Compounded twice a year ( n ) = 2
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = Future value
Solution:
Substitute the given values of P, r, n and t to the formula for the compound interest.
A = $3000 ( 1 + 0.05/2)^(2)(1)
A = $3000 ( 1.025)^2
A = $3000 (1.050625)
A = $3,151.875
Final answer:
A = $3,151.875