Description
A business person invest $3281 at 2% compounded semiannually for 2 years. What is the future value of investment? How much interest will be earned over a two year period? Round to nearest cent as needed.
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Explanation & Answer
A=P(1+r/100)^n
= 3281(1+1/100)^4
= 3281(101/100)^4
=3281(1.01)^4
=3281 *1.040
= 3412.24
future value $ 3412
interest = amount - principal
=3412-3281
=$ 131
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