You have recently graduated from high school, and are planning for your next steps in education. You received $11 000 from your grandparents when you started high school. You have put that amount into an account paying 5% per year, compounded semi-annually. You plan to use this money towards a Bachelor's degree. How much do you have after 4 years?
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P = the principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years In this case, we have: P = $11000 r = 5% = 0.05 n = 2 (since the Show more…
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