Brenda invests 4,848 in a savings account with a fixed annual interest rate of 5% compounded 2 times per year. What will the account balance be after 6 years?

Solution

Brenda invests 4, 848 in a savings account with a fixed annual interest rate of 5% compounded 2 times per year. What will the account balance be after 6 years?

Solution

Amount : 6520.02

Solution steps

Translate the problem into an equation:

A = 4848 (1 + \frac{0.05}{2})^{2 \cdot 6}

4848 (1 + \frac{0.05}{2})^{2 \cdot 6} = 6520.02101 \dots

Round to the nearest hundredth:

6520.02

Amount : 6520.02

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