Question

7. An investment account pays 3.9% interest compounded semi-annually. If

$4,000 is invested in this account, what will the balance be after 12 years?

Answer 1

The balance in the investment account after 12 years with compound interest can be calculated using the formula A = P(1 + r/n)^(nt). Plugging in the given values, the balance will be approximately $5,866.66.

Step-by-step explanation:

To calculate the balance in the investment account after 12 years, we can use the formula for compound interest:

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

Where:

A is the balance after t years

P is the principal amount (initial investment)

r is the annual 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, P is $4,000, r is 3.9% (or 0.039 as a decimal), n is 2 (since interest is compounded semi-annually), and t is 12. Plugging these values into the formula:

A = 4000(1 + 0.039/2)^(2*12)

After calculating, the balance in the account after 12 years will be approximately $5,866.66.

Answer 2

the balance would be 48000

Step-by-step explanation:

First you really dont have to do with the 3.9%

If 4000 is invested and you need the balance after 12 years you just multiply

4000 times 12=48000