Suppose that 17,000is deposited for five years at 3%APR. Calculate the interest earned if interest is compounded semiannually. Round your answer to the nearest cent.

Solution

Suppose that 17, 000is deposited for five years at 3%APR. Calculate the interest earned if interest is compounded semiannually. Round your answer to the nearest cent.

Solution

Interest : 2729.19

Solution steps

Translate the problem into an equation:

19729.19402 \dots = 17000 + I

Solve for

I, 19729.19402 \dots = 17000 + I : I = 2729.19

Interest : 2729.19

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