Answer:
$3,033.56
Step-by-step explanation:
(see attached for reference)
The formula for compound interest is given by
A = P [ 1 + (r/n) ]^(nt)
Where,
A = final amount (we are asked to find this)
P = principal = given as $1500
r = annual interest rate = 9% = 0.09
n = 2 (for compounding semi-annually)
t = time, given as 8 years
Substituting the above into the equation:
A = P [ 1 + (r/n) ]^(nt)
A = 1500 [ 1 + (0.09/2) ]^[(2)(8)]
A = 1500 [ 1.045) ]^[16]
A = $3,033.56
