Solve the problem.
-Alicia invests $14,000 in a savings account earning interest at a rate of 9% compounded semiannually. Find the amount in the account at the end of 7 years.
A)$11,927.23
B)$25,927.23
C)$25,592.55
D)$24,810.75

Question

Quizplus · Accepted Answer

The amount in the account can be found using the formula for compound interest: A = P(1 + r/n)^(nt), where P is the principal amount ($14,000), r is the annual interest rate (9% or 0.09), n is the number of times the interest is compounded per year (2 for semiannually), and t is the time the money is invested for in years (7). Plugging in the values, A = 14000(1 + 0.09/2)^(2*7) = $25,927.23.

Solve the Problem. -Alicia Invests $14,000 in a Savings Account Earning Interest at Earning