If you put $2,000 in a savings account that yields 8% compounded semiannually,how much money will you have in the account in 20 years (round to nearest $10)?
A)$6,789
B)$8,342
C)$9,602
D)$9,972

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where P is the principal amount ($2,000), r is the annual interest rate (0.08), n is the number of times interest is compounded per year (2), and t is the number of years (20). Plugging in these values gives A = 2000(1 + 0.08/2)^(2*20) = 2000(1.04)^40 ≈ $9,602.

If You Put $2,000 in a Savings Account That Yields