Final answer:
To find the accumulated value on an investment of $18,000 at 8% compounded semiannually for 7 years, we can use the formula for compound interest. The accumulated value is approximately $29,679.64.
Step-by-step explanation:
To find the accumulated value of an investment, we can use the formula for compound interest:
A = P(1 + r/n)^(nt) where:
- A is the accumulated value
- P is the principal (initial investment)
- r is the interest rate (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the principal is $18,000, the interest rate is 8% (or 0.08), and interest is compounded semiannually (n = 2). The investment is for 7 years, so t = 7. Plugging these values into the formula, we get:
A = 18000(1 + 0.08/2)^(2*7)
Simplifying this equation gives us the accumulated value:
A ≈ $29,679.64