find the time it would take to double an initial deposit of $3,000 at an interest rate of 5.25%, compounded semi-annually (rounded to the nearest whole year).
16 years
15 years
18 years
13 years
None of these choices are correct.
Answers
Answer:
→ None of these choices are correct.
Step-by-step explanation:
A = P ( 1 +r)∧t
6000 = 3000(1.0525)∧t
(1.0525)∧t = 2
t = log2/log1.0525 = 13.55
since the deposit is compounded semi annually
time = 13.55/2 = 6.77 years
→ None of these choices are correct.
Answer:
None of the above if would take 13.378 years
Step-by-step explanation:
To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$3000 , r=5.25% , n=2 and t=13.378 years
After plugging the given information we have
AAAA=3000(1+0.05252)2⋅13.378=3000⋅1.0262526.756=3000⋅2.000276=6000.83
STEP 2: To find interest we use formula A=P+I, since A=6000.83 and P = 3000 we have:
A6000.83II=P+I=3000+I=6000.83−3000=3000.83