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Sagot :
The $8000 will have grown to $13,031.16 at the end of 5 years.
To find out how much that 8000 has grown to, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
A is equal to the total amount (principal + interest)
P = principal or starting amount
r = annual interest rate
n = compound frequency (i.e. how often it is compounded)
t = time (years)
For this question, our principal amount is $8000, the interest rate is 10%, or simply 0.1, the number of compounding periods is 2 since it is semi annually, and the number of years is 5. We can plug in these values into the equation to get the following:
A = 8000*(1 + 0.1/2)^(2*5)
A = 13,031.16
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