Answer:
The balance in the account is $2528.56 after 10 years .
Step-by-step explanation:
Formula
[tex]Amount = P (1 +\frac{r}{2})^{2t}[/tex]
Where P is the principle , r is the rate of interest in the decimal form and t is the time in years .
As given
$1,400 principal earning 6%, compounded semi-annually, after 10 years .
P = $1400
6% is written in the decimal form
[tex]= \frac{6}{100}[/tex]
= 0.06
r = 0.06
t = 10 years
Put all the values in the formula
[tex]Amount = 1400(1 +\frac{0.06}{2})^{2\times 10}[/tex]
[tex]Amount = 1400(1 +0.03)^{20}[/tex]
[tex]Amount = 1400(1.03)^{20}[/tex]
Amount = 1400 × 1.80611
Amount = $2528.56
Therefore the balance in the account is $2528.56 after 10 years .
