bellabella68
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Janel invested $7,000 at 3% interest, compounded semi-annually (two times a year). What would the value of the investment be after 8 years? A = P(1+r/n)^nt

A. 10,360.00

B. 8,882.90

C. 13,600.00

D. 8,680.00

E. 8,867.39

Respuesta :

ra47466

How much would the investment be worth?

As the function for interest is already given to us, also,

The principal amount, P = $7,000

The rate of Interest, r = 3%

Time period, t = 5 years

Compounded semiannually, n = 2

Substitute the values,

Hence, the worth of the investment after 5 years at an interest of 3% is $8,123.79.

lovebelt

Answer:

Hello! Let's find the value of Janel's investment after 8 years. In the formula we're using, P will represent the principal amount, r will represent the rate of interest, and t will represent time. Since the interest is compounded semi-annually (twice a year), n = 2. Finally, A represents the value of the investment after t (8 years).

Substitute these values into the formula:

[tex]A = P(1 + \frac{r}{n} )^{nt}[/tex]

[tex]A = 7000(1+\frac{0.03}{2} )^{2*8}[/tex]

Simplify the equation:

[tex]A = 8882.89883357[/tex]

Round this number to the nearest hundredth:

[tex]A = 8882.90[/tex]

The correct answer is B. 8,882.90.

I hope this helps you! Have a great day. :)

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