Question

Find the final amount of money in an account if $ 8 , 000 is deposited at 5 % interest compounded semi-annually and the money is left for 9 years.

Answer 1

Answer: $12477.27

Explanation:

The formula to find the compound amount after t years (compounded semiannually) :-

$A=P(1+\dfrac{r}{2})^{2t}$

Given : Principal amount : P = $ 8,000

Rate of interest : $r=0.05$

Time : 9 years

Now, $A=8000(1+\dfrac{0.05}{2})^{2\times9}$

$A=8000(1+0.025)^{18}=12477.2697417\approx\ 12477.27$

The final amount in the account will be $12477.27