Question

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.

Answer 1

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