## College Algebra (6th Edition)

5.5$\%$ compounded semiannually
After $t$ years, the balance, $A$, in an account with principal $P$ and annual interest rate $r$ (in decimal form) for $n$ compoundings per year: $\displaystyle \quad A=P(1+\frac{r}{n})^{nt}$ -------------- For $5.5\%,$ compounded semiannually (n=2): $A=5000(1+\displaystyle \frac{0.055}{2})^{2\cdot5}\approx 6558.26$ 5.25$\%$ compounded monthly (n=12): $A=5000(1+\displaystyle \frac{0.0525}{12})^{12\cdot 5}\approx 6497.16$ Return is greater for for 5.5$\%$ compounded semiannually