Compute the compound interest.
-Binal Patel invested $\$ 5500$ at $9 \%$ compounded semiannually. How much will be in the account in 8 years? Round to the nearest cent.
A) $\$ 11,123.04$
B) $\$ 7821.55$
C) $\$ 21,836.68$
D) $\$ 10,959.09$

Question

Quizplus · Accepted Answer

The compound interest formula is $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (\$5500), $r$ is the annual interest rate (9% or 0.09), $n$ is the number of times that interest is compounded per year (2 for semiannually), and $t$ is the time the money is invested for in years (8 years). Plugging in the values: $A = 5500(1 + \frac{0.09}{2})^{2*8}$, calculating this gives approximately \$11,123.04.

Compute the Compound Interest $5500\$ 5500$5500 At 9%9 \%9% Compounded Semiannually $11,123.04\$ 11,123.04$11,123.04

Compute the Compound Interest $\$ 5500$ At $9 \%$ Compounded Semiannually $\$ 11,123.04$