An amount of $600.00 is deposited in a bank paying an annual interest rate of 3.25%, compounded semi-annually. What is the balance after 3 years?
+128632 We're using this
A = P [ 1 + r / n ] ^ [ n * t]
Where
A is the final amt [to be determined]
P is the amount invested [ the principal] = 600
r is the intterest rate expressed as a decimal = .0325
n is the number of compoundings per year = 2
t is the number of years = 3
So we have
A = 600 [ 1 + .0325/2] ^ [2 *3 ] = about $660.93
