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Find the final amount of money in an account if $ 8 , 000 is deposited at 5 % interest compounded semi-annually and the money is left for 9 years.

1 Answer

3 votes

Answer: $12477.27

Step-by-step explanation:

The formula to find the compound amount after t years (compounded semiannually) :-


A=P(1+(r)/(2))^(2t)

Given : Principal amount : P = $ 8,000

Rate of interest :
r=0.05

Time : 9 years

Now,
A=8000(1+(0.05)/(2))^(2*9)


A=8000(1+0.025)^(18)=12477.2697417\approx\$12477.27

The final amount in the account will be $12477.27

User Raduation
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