Find the compound amount for the deposit. Round to the nearest cent.
-$\$ 4400$ at $9 \%$ compounded semiannually for 12 months.
A) $\$ 4804.91$
B) $\$ 5227.64$
C) $\$ 4598.00$
D) $\$ 4796.00$

Question

Quizplus · Accepted Answer

The compound amount can be calculated using the formula $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. Here, $P = \$4400$, $r = 9\% = 0.09$, $n = 2$ (since it's compounded semiannually), and $t = 1$ year. Plugging these values into the formula gives $A = 4400(1 + \frac{0.09}{2})^{2*1} = 4400(1 + 0.045)^2 = 4400(1.045)^2 = \$4804.91$.

Find the Compound Amount for the Deposit $4400\$ 4400$4400 At 9%9 \%9%

Find the Compound Amount for the Deposit $\$ 4400$ At $9 \%$