Brian invested $\$ 4000$ at an interest rate of $5 \%$ for 10 years, where the interest was compounded semiannually. If $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$ calculate the accumulated amount.
A)$6,554.47
B)$26,217.88
C)$13,108.94
D)$3,277.24

Question

Quizplus · Accepted Answer

The formula for compound interest is $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P$ is the principal amount (\$4000), $r$ is the annual interest rate (0.05), $n$ is the number of times the interest is compounded per year (2 for semiannually), and $t$ is the time the money is invested for (10 years). Plugging these values into the formula gives $A = 4000 \left(1 + \frac{0.05}{2}\right)^{2 \times 10} = \$6,554.47$.

Brian Invested $4000\$ 4000$4000 At an Interest Rate Of 5%5 \%5% For 10 Years, Where the Interest Was Compounded Semiannually

Brian Invested $\$ 4000$ At an Interest Rate Of $5 \%$ For 10 Years, Where the Interest Was Compounded Semiannually