The compound interest when $7300 when interest is compounded semi annually is $2482.70.
The compound interest when $7300 when interest is compounded monthly is $1972.73.
<h3>What is the
compound interest?</h3>
An investment earns compound interest when both the amount invested and the interest accrued increases in value at predetermined time intervals.
The formula to represent compound interest is :
FV - amount invested
FV = P (1 + r)^nm
- FV = Future value
- P = Present value
- R = interest rate
- m = number of compounding
- N = number of years
a. 7300 x [1 + (0.1/2)]^(3 x 2) = 9782.70
Compound interest = 9782.70 = 7300 = $2482.70
b. 7300 x [1 + (0.08/12)]^(12 x 3) = 9272.73
9272.73 - 7300 = $1972.73
To learn more about compound interest, please check: brainly.com/question/26367706
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