You deposit $3,500.00 in an account earning 9.5% interest compounded semi- annually. e 2: (a) How much will you have in the account in 5 years? Answer: $_________ Do not round any intermediate calculations. Round only the final answer to the nearest cent (two decimal places). 3: (b) From part (a), how much interest will have been earned? Answer: $_________ Blank # 1 Blank # 2
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Given: Principal amount (P) = $3,500.00 Annual interest rate (r) = 9.5% = 0.095 Compounding frequency (n) = semi-annually, so n = 2 Time (t) = 5 years The formula for compound interest is: $A = P(1 + r/n)^{nt}$ where: A = the future value of the investment/loan, Show more…
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