Final answer:
To find the total amount after 7 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount (initial investment), r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, the principal amount is $2000, the annual interest rate is 4% (or 0.04 as a decimal), and the interest is compounded semiannually (n = 2). Plugging in the values, we get A = 2000(1 + 0.04/2)^(2*7) = $2451.75.
Step-by-step explanation:
To find the total amount after 7 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount (initial investment), r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, the principal amount is $2000, the annual interest rate is 4% (or 0.04 as a decimal), and the interest is compounded semiannually (n = 2).
Plugging in the values, we get A = 2000(1 + 0.04/2)^(2*7) = $2451.75.