# 735 at 7% for 2 1/2 years?

##### 1 Answer

Jan 25, 2018

#### Explanation:

Assumed that interest is compounded half yearly.

Formula for total amount is

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

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

Given : P = 735, r = 0.07, t = 5/2, n = 2