Nora's savings account has a balance of $3979. After 4 years, what will the amount of interest be 12% compounded semiannually?

The interest earned will be $2362.92.

Step-by-step explanation:

The compound interest amount function is A = P (1 + r/n) ^ (nt), where

P is the original principal, r is the interest rate as a decimal fraction, n is the number of compounding periods per year, and t is the number of years.

In this particular problem, the formula becomes:

A = $3979 (1 + 0.12/2) ^ (2*4), where 2 represents the number of compounding periods if compounding occurs semiannually.

Evaluating this expression, we get:

A = $3979 (1+0.06) ^8, or

A = $3979 (1.06) ^8, or

A = $3979 (1.594), or

A = $6341.92 (rounded off to the nearest cent)

The interest will be $6341.92 less the original principal, $3979:

I = $6341.92 - $3979 = $2362.92