Question

Martina deposited $4,000 into an account with 5.1% interest compounded semi-annually. assuming that no no withdrawals are made how much will she have in the account after 9 years?

Answer 1

Martina deposited $4,000 into an account with 5.1% interest compounded semi-annually. assuming that no no withdrawals are made how much will she have in the account after 9 years?​

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

P=$4,000

r=5.1%=5.1/100=0.051

n=2

t=9 years

substitute in the formula

`\begin{gathered} A=4,000(1+(0.051)/(2))^(2\cdot9) \\ A=\$6,293.64 \end{gathered}`

the answer is $6,293.64