Interest Rate Algebra

[The Stranger]

Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?

[Martingale]

Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?

Do you at least have the formula you are supposed to use?

[The Stranger]

Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?

Do you at least have the formula you are supposed to use?

I just figured out the formula, I'm not sure if it's right:

A=P(1+i)^n

Where P=principal, i=interest, and n is the number of years.

A=100,000(1+5%)^5

[Martingale]

Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?

Do you at least have the formula you are supposed to use?

I just figured out the formula, I'm not sure if it's right:

A=P(1+i)^n

Where P=principal, i=interest, and n is the number of years.

A=100,000(1+5%)^5