Respuesta :

ANSWER

$3157.86

EXPLANATION

We have that Carol is depositing $1500 into an account earning 3% that is compounded semiannually.

The formula for amount for a compound interest is:

[tex]A\text{ = }P(1\text{ + }\frac{r}{n})^{n\cdot t}[/tex]

where P = principal (amount deposited)

r = interest rate

t = number of years

n = number of times interest is compounded

Since the interest is compounded twice a year (semiannually), n = 2.

From the question:

P = $1500

r = 3% = 0.03

t = 25 years

So, the amount of money that will be there after 25 years is:

[tex]\begin{gathered} A\text{ = 1500(1 + }\frac{0.03}{2})^{2\cdot25} \\ A=1500(1+0.015)^{50} \\ \text{A = 1500(1.015)}^{50} \\ A\text{ = \$3157.86} \end{gathered}[/tex]