Martina deposited $4,000 into an account with 5.1% interest compounded semi-annually. assuming that no no withdrawals are made how much will she have in the account after 9 years?
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$4,000
r=5.1%=5.1/100=0.051
n=2
t=9 years
substitute in the formula
[tex]\begin{gathered} A=4,000(1+\frac{0.051}{2})^{2\cdot9} \\ A=\$6,293.64 \end{gathered}[/tex]