Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually. a) What is n for the compound interest part? b) What is the future value after the compound interest part? c) Simple interest is used for how many months? d) Assuming simple interest for the partial period, how much money does Hanna have in the account at the end of 8 years and 10 months?
Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually.
a) What is n for the compound interest part?
b) What is the
c) Simple interest is used for how many months?
d) Assuming simple interest for the partial period, how much money does Hanna have in the account at the end of 8 years and 10 months?
Basic Details:
1. Investment = $8400
2. Time = 8 years and 10 Months
3. Interest rate = 5 % compounded Semi Annually
Formula:
1. Future Value using Compound Interest = Investment * (1 + Interest per period)^# of periods
2. Future Value using Simple Interest = Investment * (1 + Total Interest Rate * # of periods / 12)
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