Question

Peyton received a graduation gift from his grandparents of $12,700. He
does not need the money for the first year of college. So he decided to
invest the money in a high interest savings account. If he puts all the
money in a high interest savings account paying 8.8% interest
compounded semiannually, how much money will be in the account at the
end of one year to use for college? *

Answer 1

Answer:

Peyton's account will have $13,842.18 after a year.

Step-by-step explanation:

Given that Peyton received $ 12,700 and decided to invest it for a year in an account that grants an interest of 8.8% per year, compounded semiannually, to determine the amount of money that will be in said account after the passage of one year, it is necessary to perform the following calculation:

X = 12,700 (1 + 0.088 / 2) ^ 1x2

X = 13,842.18

Therefore, after a year has passed, Peyton's account will be $ 13,842.18.