Answer:
The answer would be 20.97273616 or (rounded to the nearest cent) would be $20.97
Step-by-step explanation:
The reason for this is that the formula for compounded interest is [tex]A=P(1+\frac{r}{n})^\frac{t}{n}[/tex] where A is the total amount, P is the initial amount, r is the growth factor or the percent, n is the number of compounding periods, and t is the time. You would substitute P for 16, r for 0.14 (14%), n for 2 as it compounded semiannually so it for every 6 months instead of 1 year (annual) so is compounded 2 times per year, and t for 2. And just solve the equation and you get that A is equal to 20.97273616 but since we are talking about money( only round if asked) then it would be 20.97.
Hope this helps!!!!
Step-by-step explanation:
Given,
principal(p)= $16
Time(t) = 2 years
Rate(r) = 14%
now,
Simple Interest (si) = PTR/100
= 16×2×14/100
= 448/100
= $4.48 ans
