George deposited $750.00 into an account that earns 7% interest which is compounded 2 times per year. How much money will George have in his account in 5 years?

Question

Mathematics

Felix Rojas

9 April, 05:59

George deposited $750.00 into an account that earns 7% interest which is compounded 2 times per year. How much money will George have in his account in 5 years?

+4

Answers (1)

Know the Answer?

Arnav Hanna · Answer 1

Amount in compound interest = p (1 + r/t) ^nt where p is the initial deposit, r = rate, t = number of compunding in a period and n = period.

Here, Amount after 5 years = 750 (1 + (7/100) / 2) ^ (5 x 2) = 750 (1 + 0.07/2) ^10 = 750 (1 + 0.035) ^10 = 750 (1.035) ^10 = 750 (1.410599) = $1,057.95