$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $10,000 at 4% compounded semiannually for 5 years.
A)$12,000.00
B)$11,040.81
C)$12,166.53
D)$12,189.94

Question

Quizplus · Accepted Answer

Using the compound interest formula $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 10000$, $r = 0.04$ (4% as a decimal), $n = 2$ (compounded semiannually), and $t = 5$ years, we calculate the accumulated value as follows: $A = 10000 \left(1 + \frac{0.04}{2}\right)^{2 \cdot 5} = 10000 \left(1 + 0.02\right)^{10} = 10000 \left(1.02\right)^{10} = 12189.94$.

Use the compound interest formulas A=P(1+rn)nt and A=Pert to solve. \text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. } Use the compound interest formulas A=P(1+nr​)nt and A=Pert to solve.

$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$