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Use the table or a calculator to find the final accumulated amount and the total interest. (Round your answers to the nearest
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Answer #1

1.

Initial Capital = $14,000

Interest Rate = 12% per year compounded semi annually

Annually Compounded Interest Rate = (1 + 0.12/2)2 - 1 = 12.36%

Time period = 8 years

FV = PV(1 + r)t

Final Accumulated Amount = 14000(1.1236)8

Final Accumulated Amount = $35,564.92

Total Interest = 35564.92 - 14000

Total Interest = $21,564.92

2.

Initial Amount = $500

Interest Rate = 5%

Time Period = 7 years

FV = PV(1 + r)t

Final Accumulated Amount = 500(1.05)7

Final Accumulated Amount = $703.55

Total Interest = 703.55 - 500

Total Interest = $203.55

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