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rigoberto invests $8,000, at 6% interest, compounded semiannually for 1 year. use the compound interest formula to calculate the compound interest for his investment.
P = $8,000 is the principal value;
r = 0.06 or 6% interest rate;
m = 2 is the number of compounding periods per year;
t = 1 year;
i = r/m = 0.06/2 = 0.03 is the interest rate per period;
n = mt = 2*1 = 2 is the number of compounding periods;
A = is the future value;
the interest is 8487.2 - 8000 = $487.2.



Answer :

varshamittal029

Rigoberto invests $8,000, at 6% interest, compounded semiannually for 1 year the compound interest for his investment is 8487.2

A = P(1 + r/n)²

In the formula

A = Accrued amount (principal + interest)

P = Principal amount = 8000

r = Annual nominal interest rate as a decimal = 0.06

R = Annual nominal interest rate as a percent

r = R/100

n = number of compounding periods per unit of time

t = time in decimal years;

A = 8000(1 + 0.06/2)²

= 8000(1 + 0.03)²

= 8000(1.0609)

= 8487.2

Therefore, the compound interest for his investment is 8487.2

To learn more about compound interest refer here

https://brainly.com/question/24274034

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