You deposit $9,000 in an account earning 5.5% interest compounded semiannually. How much will you have in the account after 10 years?
(Note: Use n=12 for monthly compounding, n=4 for quarterly compounding, n=2 for semiannual compounding, and n=1 for annual compounding.)
$15483.855
correct.
To calculate the amount of money you will have in the account after 10 years with a 5.5% interest rate compounded semiannually, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money in the account after time t
P = the principal amount (the initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, you have a principal amount of $9,000, an annual interest rate of 5.5% (or 0.055 as a decimal), the interest is compounded semiannually (n = 2), and you want to find the amount after 10 years.
Plugging in these values into the formula, you get:
A = 9000(1 + 0.055/2)^(2 * 10)
A = 9000(1.0275)^20
A ≈ $15,483.855
So, you will have approximately $15,483.855 in the account after 10 years.