Amount deposited = $8500
Rate = 5%
time for interest = 6years
Compounded semiannually
The formula for semiannually is
[tex]A=P(1+\frac{r}{100n})^{nt}[/tex]From the given information
P = $8500
r = 5
t = 6
Since the investment was compounded semiannually then
n = 2
Substitute the values into the formula
This gives
[tex]A=8500(1+\frac{5}{100\times2})^{6\times2}[/tex]Solve for A
[tex]\begin{gathered} A=8500(1+0.025)^{12} \\ A=8500(1.025)^{12} \\ A=11431.56 \end{gathered}[/tex]To find the interest
Recall
[tex]I=A-P[/tex]Where I, is the interest
Hence
[tex]\begin{gathered} I=\text{\$}11431.56-\text{\$}8500 \\ I=\text{\$}2931.56 \end{gathered}[/tex]