7300 @ 7% COMPOUNDED SEMIANNUALLY FOR 3 YRS
Use compound interest formula:
Amount = Principal * (rate)^n
rate=interest rate per period
n=number of periods compounded.
Here
rate = 1+ 0.07/2=1.035
number of periods = 3 years * 2 periods/yr
principal=$7300
The question didn't say what's required.
2044
204
To calculate the future value of an investment compounded semiannually, you'll need to use the compound interest formula:
FV = P(1 + r/n)^(nt)
Where:
FV = future value
P = principal (initial investment)
r = annual interest rate (as a decimal)
n = number of compounding periods per year
t = number of years
In your case, the principal (P) is $7,300, the annual interest rate (r) is 7% (or 0.07 as a decimal), the number of compounding periods per year (n) is 2 (compounding semiannually), and the number of years (t) is 3.
Plugging in these values into the formula, we get:
FV = 7300(1 + 0.07/2)^(2*3)
First, let's simplify the inside of the parentheses:
1 + 0.07/2 = 1.035
Next, let's calculate the exponent:
2*3 = 6
Now, we can substitute these values into the formula and evaluate it:
FV = 7300 * 1.035^6
≈ 7300 * 1.238433
Calculating the result, we have:
FV ≈ $9,028.70
Therefore, the future value of an investment of $7,300 compounded semiannually at a 7% annual interest rate for 3 years would be approximately $9,028.70.