Semiannual compounding implies that interest is compounded times per year. You have deposited $96,780 into an account that will earn an interest rate of 9% compounded semiannually. How much will you have in this account at the end of four years?

Final Value = $137,630.90

Explanation:

Giving the following information:

You have deposited $96,780 into an account that will earn an interest rate of 9% compounded semiannually.

n = 4*2 = 8

To calculate the final value we need to use the following formula:

FV = PV * (1+i) ^n

PV = 96,780

i = 0.09/2 = 0.045

n=8

FV = 96,780 * (1.045) ^8 = $137,630.90