Michael deposits $35,000 today in his bank account. calculate the approximate amount he will have at the end of six years if interest is 10% per year and is compounded semiannually.?
Compound interest is given by: A=p(1+r/(100*n))^(nt) where; A=future amount p=principle amount=$35,000 r=rate=10%=0.1 n=number of terms=2 t=time=6 Hence, A=35,000(1+0.05)^(2*6) A=35000(1.05)^12 A=$62,854.97 The amount of money after 6 years will be $62,854.97
