Use the formula to find the total amount of money accumulated at the end of the indicated time period for the following investments. Please round the answers to the nearest hundredth. $300 for 13 years at 8% compounded semiannually.
A) $813.02
B) $830.96
C) $823.83
D) $831.74
E) $875.65

Question

Use the formula  to find the total amount of money accumulated at the end of the indicated time period for the following investments. Please round the answers to the nearest hundredth. $300 for 13 years at 8% compounded semiannually.
A) $813.02 
B) $830.96 
C) $823.83 
D) $831.74 
E) $875.65

Quizplus · Accepted Answer

The formula given is the compound interest formula, where 
P = principal amount (the initial amount you borrow or deposit), 
r = annual interest rate (as a decimal), 
n = number of times the interest is compounded per year, 
t = number of years.
In the given investment case, P=$300, r=8% = 0.08, n=2 (compounded semiannually), t=13 years.
So, the total amount accumulated is given by: 
= 300(1 + 0.08/2)^(2*13)
= $831.74 (rounded to the nearest hundredth)
Hence, the best choice is D.

Use the Formula to Find the Total Amount of Money