Your aunt is planning to invest in a bank CD that will pay 8.0 percent interest semiannually. If she has $10,500 to invest, how much will she have at the end of four years?
Amount of investment= $10,500
Semi-annual interest rate = r = 8%/2 = 4% = 0.04
Number of semi-annual periods = n = 4 years * 2 = 8
Future value of investment = Amount invested*(1+r)n
Value of investment at the end of 4 years = $10,500*1.048 = $14,369.98
Your aunt is planning to invest in a bank CD that will pay 8.0 percent interest...
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