find the amount that will be in savings acct at the end of 1 yr if 2000 is the initial deposit,annual rate 7%?

Question

is compounded semiannually.(hint;find the simple interest twice)

Answer 1

Amount after 1st 6 months
= $ 2000 + 7%/2 of $2000
= $2000(1 + 0.035)
= $2000(1.035)
Amount after 2nd six months
= $2000(1.035) + 7%/2 of $2000(1.035)
= $2000(1.035)²
= $2142.45

Answer 2

The formula for compounding interest is:

Amt = Principal * ( 1 + (rate/period))^(period * time)

where rate is the interest rate per year
period is how often you compound in a year
time is the total length of time in years

so for your question it will be

2000 * (1 + 0.07/2)^(2*1)

Which will come out to be: 2142.45 dollars.

Think about this.... you have 7% interest per year (that is 0.07) but you compound every 6 months, so you'll get 0.07/2 at a time. In which you will do twice (2 in exponent) and you will do it for one year (1 in exponent)

If you want to do this in different way, you can first figure out that every 6 months you get 0.035 interest. So after 6 months, you have 2000 * (1 + 0.035) dollars which comes out to be 2070 dollars. Then take this amount and do the same. 2070 * (1 + 0.035) = 2142.45 dollars.

Answer 3

I=prt

$2142.45

Answer 4

P = 2000
t = 1
r = .07
n = 2
A(t) = P(1 + (r/n))^nt
A(t) = 2000(1 + (.07/2))^(2)(1)
A(t) = 2142.45

ANSWER
$2142.45

Answer 5

2000 x 0.07 = $140
Plus original $2000
Total is $2140

Answer 6

(2000 * 0.07) / 2 = 70
70 + 2000 = 2070
(2070 * 0.07) / 2 = 72.45
70 + 72.45 = 142.45
2000 + 142.45 = $2142.45

Answer 7

7% of 2000 = 140

2140

2.45 off. wow i feel rich already

Answer 8

I = prt

Interest = percent (rate) (time)

Figure it out.