Answer:
Jimmy's account balance will be $673.43 after 10 years.
Step-by-step explanation:
The compound interest formula is given by:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this problem, we have that:
[tex]P = 500, r = 0.03, n = 2, t = 10[/tex]
What will Jimmy’s account balance be after 10 years if the interest is compounded 2 times each year?
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A = 500(1 + \frac{0.03}{2})^{2*10} = 673.43[/tex]
Jimmy's account balance will be $673.43 after 10 years.
