Abbie invests 1,541 in a savings account with a fixed annual interest rate of 2% compounded 2 times per year. What will the account balance be after 6 years?

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Solution

Abbie invests 1, 541 in a savings account with a fixed annual interest rate of 2% compounded 2 times per year. What will the account balance be after 6 years?

Solution

Amount : 1736.44

Solution steps

Translate the problem into an equation:

A = 1541 (1 + \frac{0.02}{2})^{2 \cdot 6}

1541 (1 + \frac{0.02}{2})^{2 \cdot 6} = 1736.43737 \dots

Round to the nearest hundredth:

1736.44

Amount : 1736.44

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