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Tessa invests $5600 into a new savings account which is 4% annual interest compounded semi-annually. What will be the value of her investment after eight years?

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Final answer:

The value of Tessa's investment after eight years is approximately $6648.05.

Step-by-step explanation:

To find the value of Tessa's investment after eight years, we can use the compound interest formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $5600, r = 4%, n = 2 (compounded semi-annually), and t = 8. We can plug in these values to calculate the final amount:

A = 5600(1 + 0.04/2)^(2*8) = $6648.05

Therefore, the value of Tessa's investment after eight years will be approximately $6648.05.

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