Download presentation

Presentation is loading. Please wait.

Published byAubrey Cottier Modified over 9 years ago

1
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.

2
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.

3
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.

4
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.

5
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?

Similar presentations

© 2024 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google