Question

Can someone explain to me how to get the answer?

Answer 1

Amount = P
`(1+ (r)/(n)) ^(nt)`

P is the amount you invested.
r is the interest rate in decimal form (so 6% = 0.06)
n is the number of times a year you are paid interest (semiannually = 2)
nt is the number of payment times you expected (4 years, twice a year = 8 times)