Question

Find the amount that results from the investment. $14,000 invested at 8% compounded semiannually after a period of 5 years

Answer 1

The amount that results from the investment is approximately $19,100.42.

Step-by-step explanation:

To find the amount that results from the investment, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate (expressed as a decimal), n is the number of times interest is compounded per year, and t is the number of years.

In this case, the principal amount is $14,000, the annual interest rate is 8% (or 0.08 as a decimal), and interest is compounded semiannually (n = 2). The period of investment is 5 years (t = 5).

Plugging in these values into the formula, we get:

A = 14000(1 + 0.08/2)^(2 * 5)

A = 14000(1 + 0.04)^10

A = 14000(1.04)^10

A ≈ $19,100.42

Answer 2

The amount that results from the investment is $23,628.03.

Step-by-step explanation:

To find the amount that results from the investment, we can use the formula for compound interest.

The formula is given by
`A = P(1 + r/n)^(nt)`

where A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the time in years.

In this case, P = $14,000, r = 8% = 0.08, n = 2 (since it is compounded semiannually), and t = 5 years.

Plugging in these values into the formula, we get

A =
`= $14,000(1 + 0.08/2)^(2*5)`

= $23,628.03.

Therefore, the amount that results from the investment is $23,628.03.