An initial Investment of 14000 Is appreciated for 4 years in

An initial Investment of $14,000 Is appreciated for 4 years in an account that earns 13% interest compounded semiannually. Find the amount of money In the account at the end of the period. Round your answer to the nearest cent.

Solution

investment = $14000

time = 4 years

interest = 13% compounded semiannually

applying compound interest formula

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

A = 14000 ( 1 + .13 / 2 )^ 4* 2

A = $ 23,169.94

rounding to nearest cent

A = $ 23,169.95