Solve the problem.
-An initial investment of $14,000 is appreciated for 4 years in an account that earns 13% interest, compounded semiannually. Find the amount of money in the account at the end of the period.
A)$22,826.63
B)$23,169.94
C)$9169.94
D)$21,755.81

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where P is the principal amount ($14,000), r is the annual interest rate (0.13), n is the number of times interest is compounded per year (2 for semiannually), and t is the number of years (4). Plugging in these values gives A = 14000(1 + 0.13/2)^(2*4) = $23,169.94.

Solve the Problem. -An Initial Investment of $14,000 Is Appreciated for 4 Years