To solve this problem, we can use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal form, so 4.5% becomes 0.045).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.

In this case, Susan's initial deposit (P) is $4000, the annual interest rate (r) is 4.5% or 0.045, the interest is compounded semiannually so n is 2, and the money is invested for 8 years (t).

Substituting these values into the formula, we get:

A = 4000 (1 + 0.045/2)^(2*8)

Now, we can calculate the value:

A = 4000 (1 + 0.0225)^(16)
A = 4000 (1.0225)^(16)
A = 4000 * 1.397618
A = $5580.47

So, Susan will have approximately $5580.47 in the account after 8 years.

Question

To solve this problem, we can use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal form, so 4.5% becomes 0.045).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.

In this case, Susan's initial deposit (P) is $4000, the annual interest rate (r) is 4.5% or 0.045, the interest is compounded semiannually so n is 2, and the money is invested for 8 years (t).

Substituting these values into the formula, we get:

A = 4000 (1 + 0.045/2)^(2*8)

Now, we can calculate the value:

A = 4000 (1 + 0.0225)^(16)
A = 4000 (1.0225)^(16)
A = 4000 * 1.397618
A = $5580.47

So, Susan will have approximately $5580.47 in the account after 8 years.

Knowee AI · Accepted Answer

To solve this problem, we can use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal form, so 4.5% becomes 0.045).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.

In this case, Susan's initial deposit (P) is $4000, the annual interest rate (r) is 4.5% or 0.045, the interest is compounded semiannually so n is 2, and the money is invested for 8 years (t).

Substituting these values into the formula, we get:

A = 4000 (1 + 0.045/2)^(2*8)

Now, we can calculate the value:

A = 4000 (1 + 0.0225)^(16)
A = 4000 (1.0225)^(16)
A = 4000 * 1.397618
A = $5580.47

So, Susan will have approximately $5580.47 in the account after 8 years.

Susan deposited $4000 into an account with 4.5% interest, compounded semiannually. Assuming that no withdrawals are made, how much will she have in the account after 8 years?Do not round any intermediate computations, and round your answer to the nearest cent.

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