Answer:
financial equations use the formula
[tex]A=P (1 + \frac{r}n)} ^{nt}[/tex]
where
A is accrued amount
P = principal
r= interest rate
t = number of periods (NOTE: NOT NUMBER OF YEARS !!!)
r = interest rate (NOTE: APR the whole years interest NOT the period)
So in your question the compounding is being done "Semi-annually:
NOTE:
Annual = 1
semi-annual = 2
Quarterly = 4
monthly = 12
So your number of periods is ..... number of years (9) times the number of periods in a year (2 - for semi-annual)
9 * 2 = 18 there are 18 periods
[tex]A=P (1 + \frac{.034}2)} ^{18}[/tex]
Step-by-step explanation:
