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Naddika [18.5K]
3 years ago
5

Your aunt is planning to invest in a bank CD that will pay 5.0 percent interest semiannually. If she has $6,000 to invest, how m

uch will she have at the end of four years
Business
1 answer:
Tom [10]3 years ago
8 0

Answer:

amount would get = $7310.41

Explanation:

given data

pay interest = 5 % = 0.05

invest = $6000

to find out

how much will she have at end of four years

solution

we get here Interest is compounded semi annually  

Interest = \frac{0.05}{2}

Interest 0.025 = 2.5 %

so here we have 4 year so here 8 semi annual period

amount would get = invest ×  (1+rate)^{time}

amount would get = $6,000 ×  (1+0.025)^{8}

amount would get = $7310.41

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