College Algebra 7th Edition

Published by Brooks Cole
ISBN 10: 1305115546
ISBN 13: 978-1-30511-554-5

Chapter 4, Exponential and Logarithmic Functions - Section 4.1 - Exponential Functions - 4.1 Exercises - Page 374: 61

Answer

$7678.96$

Work Step by Step

In $A(t)=P(1+\frac{r}{n})^{nt}$ for compound interest $P,r,n,t$ respectively stand for the principal, interest rate per year, the number of times the interest is compounded per year and the number of years. $A(t)=10000$ is the amount after $t$ years. So if we invest $P$ at an interest rate of $r=0.09$ compounded semiannually ($n=2$), the amount after $t=3$ years is: $10000=P(1+\frac{0.09}{2})^{2(3)}\\P=\frac{10000}{(1+\frac{0.09}{2})^{2(3)}}\approx7678.96$
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