A bank features a savings account that has an annual percentage rate of 3.5 % with interest compounded semiannually. John Michael deposits 9,500 into the account.How much money will John Michael have in the account in 1 year?

Solução

A bank f e a t u res a s a v in g s a cco u n t t ha t ha s an ann u a l p erce n t a g e r a t e o f 3.5 % w i t h in t eres t co m p o u n d e d se miann u a ll y . J o hn M i c ha e l d e p os i t s 9, 500 in t o t h e a cco u n t . Ho w m u c h m o n ey w i ll J o hn M i c ha e l ha v e in t h e a cco u n t in 1 ye a r ?

Amount : 9835.41

Passos da solução

Translate the problem into an equation:

A = 9500 (1 + \frac{0.035}{2})^{2 \cdot 1}

9500 (1 + \frac{0.035}{2})^{2 \cdot 1} = 9835.409375

Round to the nearest hundredth:

9835.41

Amount : 9835.41