Answer:
$8942.14
Explanation:
A = P(1+r/n)^nt where:
A is the future value of the investment/loan, including interest.
P is the principal investment amount (the initial deposit or loan amount) = $7,300.
r is the annual interest rate (decimal) = 7% or 0.07.
n is the number of times interest is compounded per year = 2 (since it's compounded semiannually).
t is the time the money is invested or borrowed for in years = 3
Plugging in the values, we get:
A = 7300*(1+(0.07/2))^(2*3)
≈ 7300*(1.035)^6
≈ 7300*1.225043
≈ $8942.14