Final answer:
To find the future value and interest earned, we can use the formula for compound interest. Plugging in the given values, we find that the future value is approximately $11043.31 and the interest earned is approximately $2140.77.
Step-by-step explanation:
To find the future value and interest earned, we can use the formula for compound interest:
Future Value = Principal × (1 + interest rate/n)n*t
where Principal is the initial investment, interest rate is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
So, for this scenario, we have Principal = $8906.54, interest rate = 3%, n = 2 (compounded semiannually), and t = 9 years.
Plugging in these values into the formula, we get:
Future Value = $8906.54 × (1 + 0.03/2)2*9
Using a calculator to evaluate this expression, we find that the future value is approximately $11043.31.
The interest earned can be calculated by subtracting the initial principal from the future value:
Interest earned = Future Value - Principal
So, the interest earned in this scenario is approximately $11043.31 - $8906.54 = $2140.77.