7)
Given,
Initial deposit = $ 9000
Compounding periods (n) = 2 per year
First year interest rate = 8.25%
Semi annual rate (r1) = 8.25% 2 = 4.125% or 0.04125
Second year interest rate = 0.50%
Semi annual rate (r2) = 0.50% 2 = 0.25% or 0.0025
Third year interest rate = 2.75%
Semi annual rate (r3) = 2.75% 2 = 1.375% or 0.01375
Solution :-
Thus, at the end of three years, Alice will have in her bank account a total balance of $ 10078.20
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