Question

How much interest is earned in 5 years on $8400 deposited in an account paying 6% interest, compounded semiannually? (Round your answer to two decimal places.)

Answer 1

£11241.09

Explanation:

100+6 = 106%

106% = 1.06

8400 x 1.06^5= £11241.09485

Round to 2 d.p = £11241.09

Hope this helps