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Lesson 3-3 Example 3 3-3 Step 1Write the compound interest formula. Find the value of an investment of $2,000 for 4 years at 7% interest compounded semiannually. Use a spreadsheet or calculator to help you. Round the answer to the nearest cent.

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Lesson 3-3 Example 3 3-3 Step 2 How many times is interest paid per year? 2, n = 2 How many years is the investment? 4, t = 4 Let x = the amount of commission. Find the value of an investment of $2,000 for 4 years at 7% interest compounded semiannually. Use a spreadsheet or calculator to help you. Round the answer to the nearest cent.

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Lesson 3-3 Example 3 3-3 Step 3 Substitute the values that you know. Find the value of an investment of $2,000 for 4 years at 7% interest compounded semiannually. Use a spreadsheet or calculator to help you. Round the answer to the nearest cent.

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Lesson 3-3 Example 3 3-3 Find the value of an investment of $2,000 for 4 years at 7% interest compounded semiannually. Use a spreadsheet or calculator to help you. Round the answer to the nearest cent. = 2,000 (1 + 0.035) 2(4) = 2,000 (1.035) 2(4) = 2,000 (1.035) 8 = 2,000 (1.317) = 2,634.00 Step 4Simplify.

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Lesson 3-3 Example 3 3-3 Find the value of an investment of $2,000 for 4 years at 7% interest compounded semiannually. Use a spreadsheet or calculator to help you. Round the answer to the nearest cent. $2,634.00 Step 5What is the value of the account at the end of 4 years?

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CONTINUOUSLY COMPOUNDED INTEREST FORMULA amount at the end Principal (amount at start) annual interest rate (as a decimal) time (in years)

CONTINUOUSLY COMPOUNDED INTEREST FORMULA amount at the end Principal (amount at start) annual interest rate (as a decimal) time (in years)

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