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25 July, 03:21

At the end of a 5-year term, what is the balance of an $8,000 investment at a rate of 1.8 percent compounded semi-annually? Round to the nearest dollar.

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  1. 25 July, 06:54
    0
    =$8750

    Explanation:

    Principal amount 8000

    Interest rate 1.8 percent per year = 0.018

    Number of times compounded per year 2

    Number of years 5

    Amount after 5 years = 8000 (1 + 0.018 / 2) ^ (10)

    = 8000 (1.009) ^ (10)

    Amount after 5 years = $ 8,749.87

    =$8750
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