Question

4. How much interest will you earn in 8 years if you invest $7500 at 4.25% compounded semi-annually?

Answer 1

Answer:

$10,499.64

Step-by-step explanation:

^ means to the power of or exponent

* means multiply

semi annually = 2

formula is A = P(1 + r/n)^nt

make 4.25% into a decimal = .0425 = r

then plug it in

A = 7500(1+.0425/2)^2*8

A = 7,500.00(1 + 0.02125)^16

A = $10,499.64