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13 February, 01:21

Saving account has a principal of 1,800.00 it earns 6 percent interest compounded semiannually. How much is the compound interest after 1 year

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  1. 13 February, 02:29
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    First find the future value

    A=p (1+r/k) ^kt

    A future value?

    P principle 1800

    R interest rate 0.06

    K compounded semiannual 2

    T time 1 year

    A=1,800 * (1+0.06:2) ^ (2*1)

    A=1,909.62

    Now find the compound interest

    I=A-p

    I=1,909.62-1,800

    I=109.62
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