Answer: 508.81
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Work Shown:
3 & 1/2 = 3 + 1/2 = 3 + 0.5 = 3.5
3.5% = 3.5/100 = 0.035
r = 0.035 is the decimal form of [tex]3\frac{1}{2}\%[/tex] which is used along with
- P = 500 (principal deposit)
- n = 12 (compounding 12 times a year)
- t = 0.5 (6 months is half a year)
to get the following
A = P*(1+r/n)^(nt)
A = 500*(1+0.035/12)^(12*0.5)
A = 508.81405074594
A = 508.81
Extra info: Gabe earned A-P = 508.81 - 500 = 8.81 dollars in interest.
