Jeanne Crawford had $9,675.95 deposited in an account paying 6 percent interest compounded semiannually. How much would she have in her account 2 years later? What is the compound interest?

1 Answer
May 2, 2017

Answer:

After two years, Jeanne Crawford will have $12215.66 in her account.

Explanation:

The equation:

Final Money=#I*(1.06)^t#

t is time period (4 for two years since interest due to each semiannual period) and I is initial (starting) Money, which is $9675.95

You can compute total Money after 4 semiannual periods and total compounded Money:

Final Money=#9675.95*(1.06)^4#

Final Money=#$12215.66#

Total compounded money (after two years)=#2539.71#