Algebra-1

1. Recall the compound interest formula for compounding  times a year:

The formula is , where:

 is the amount of money accumulated after  years, including interest.

 is the principal amount (the initial investment). Here, .

 is the annual interest rate (in decimal form). Given an annual interest rate of , so .

 is the number of times interest is compounded per year. Since it's compounded semi - annually, .

 is the number of years. Here,  years.

2. Substitute the values into the formula:

First, calculate the value inside the parentheses:

Click "Show Answer" to reveal the answer and analysis