Eugene’s parents put 2,500 in a bank account for college tuition at an interest rate of 8.75% compounded semiannually. What will be the balance after 18 years?

Solución

Eugene’s parents put 2, 500 in a bank account for college tuition at an interest rate of 8.75% compounded semiannually. What will be the balance after 18 years?

Solución

Amount : 11679.21

Pasos de solución

Translate the problem into an equation:

A = 2500 (1 + \frac{0.0875}{2})^{2 \cdot 18}

2500 (1 + \frac{0.0875}{2})^{2 \cdot 18} = 11679.21341 \dots

Round to the nearest hundredth:

11679.21

Amount : 11679.21

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