Answer:
8864.73
Step-by-step explanation:
Given that your aunt is planning to invest in a bank CD that will pay 10.0 percent interest semiannually.
Effective rate = [tex]\frac{10}{200} =0.05[/tex] (since 1 year has 2 half years)
No of half years[tex]= 4(2) =8[/tex]
Final amount when compounded semi annually
=[tex]P(1+\frac{r}{200} )^{nt}[/tex]
Here n = 4years t = no of half years per year = 2
Substitute to get
Final amount
= [tex]6000(1.05)^{8} \\=8864.73[/tex]
