Answer:
The balance will be $7,577.03.
Step-by-step explanation:
The compound interest formula is given by:
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this problem, we have that:
Semianually means twice a year, so
We want to find A when .
So
The balance will be $7,577.03.