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6.1 Exercise 65

Avg difficulty 2.5

Use the compound interest formula, A(t)=P ( 1+ r n ) nt . A \left(t\right) = P \left(1 + \frac{r}{n}\right)^{n t} .

An account is opened with an initial deposit of $6,500 and earns 3.6% 3.6 \% interest compounded semi-annually. What will the account be worth in 20 20 years?

OpenStax Algebra and Trigonometry 2e, 6.1 Exponential Functions, exercise 65

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Adapted from College Algebra © 2021 Rice University. Licensed under CC BY 4.0. Sources: College Algebra 2e, Algebra and Trigonometry 2e, Precalculus 2e, College Algebra with Corequisite Support 2e. Imported at revision 4922e46.