When a principal amount, P, is invested at an annual interest rate, r, and compounded n times per year, the amount accumulated in the account after t years can be found with the equation

A=P (1+r/n) ^nt

Javier invested $2,350 in a savings account for 5 years with a rate of 1.75% compounded every six months. In this situation, what is n?

Question

Mathematics

Amirah Kim

3 April, 13:34

When a principal amount, P, is invested at an annual interest rate, r, and compounded n times per year, the amount accumulated in the account after t years can be found with the equation

A=P (1+r/n) ^nt

Javier invested $2,350 in a savings account for 5 years with a rate of 1.75% compounded every six months. In this situation, what is n?

+4

Answers (1)

Know the Answer?

Seth Rangel · Answer 1

Answer

When a principal amount, P, is invested at an annual interest rate, r, and compounded n times per year, the amount accumulated in the account after t years can be found with the equation

A=P (1+r/n) ^nt

Javier invested $2,350 in a savings account for 5 years with a rate of 1.75% compounded every six months. In this situation, what is n?