Question

Find the total amount in the compound interest account $10000 is compounded semiannually at a rate of 11% for 20 years. (Round to the nearest cent.)

Answer 1

The compound interest formula is:

$A=P(1+\frac{r}{m})^{mt}\begin{cases}A=amount \\ P=initialValue \\ r=interest \\ m=\#timesCompounedPerYear \\ t=years\end{cases}$

Therefore:

$A=(10000)(1+\frac{0.11}{1})^{20}=80623.12$