Answer:
a. $1,971.63
Step-by-step explanation:
We can use the formula for compound interest:
A = P[tex](1+\frac{r}{n}) ^{(n)(t)}[/tex]
Where:
A = the final amount
P = the principal amount
r = the annual interest rate
n = the number of times interest is compounded per year
t = the time in years
We take
A = 1800[tex](1+\frac{0.021}{2}) ^{(2)(4.5)}[/tex]
A ≈ $1,971.63
So, the answer is a. $1,971.63.
To calculate the amount in the account after 54 months with 2.1% interest compounded semi-annually, use the formula A = P(1 + r/n)^(nt). Plug in the values and calculate A ≈ $1,971.63. The correct option is A .
To calculate the amount in the account after 54 months, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
In this case, P = $1,800, r = 2.1% = 0.021, n = 2 (compounded semi-annually), and t = 54 months / 12 = 4.5 years.
Plugging these values into the formula:
A = $1,800(1 + 0.021/2)^(2*4.5)
Simplifying the expression inside the parentheses:
A = $1,800(1.0105)^(9)
Evaluating the expression raised to the power of 9:
A ≈ $1,971.63
Therefore, the amount in the account after 54 months is approximately $1,971.63.
