Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
a) The future value if the interest is compounded semiannually = $12432
b) The future value if the interest is compounded annually = $12389
The future value for compound interest is given as:
[tex]FV=P(1+\frac{r}{n})^{nt}[/tex]
The amount invested is the principal
The principal, P = $8704.56
The rate, r = 4% = 0.04
The interest is compounded semiannually
n = 2
Time, t = 9 years
Substitute these parameters into the equation above
[tex]FV=8704.56(1+\frac{0.04}{2})^{2(9)}\\\\FV=8704.56(1.02)^{18}\\\\FV=\$12432[/tex]
b) The future value if the interest is compounded annually
n = 1
[tex]FV=8704.56(1+\frac{0.04}{1})^{1(9)}\\\\FV=8704.56(1.04)^{9}\\\\FV=\$12432\\\\FV=\$12389[/tex]
Learn more here: https://brainly.com/question/25805668
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
