Answer
(a) $11,643.88\ dollars$ and $2737.34\ dollars$
(b) $11,667.25\ dollars$ and $2760.71\ dollars$
Work Step by Step
Given $P=8906.54, t=9, r=0.03$, we have:
(a) $n=2$, the future value $A=P(1+\frac{r}{n})^{nt}=8906.54(1+\frac{0.03}{2})^{2(9)}\approx11,643.88\ dollars$ and the interest $I=A-P=2737.34\ dollars$
(b) the future value $A=Pe^{rt}=8906.54e^{0.03(9)}\approx11,667.25\ dollars$ and the interest $I=A-P=2760.71\ dollars$
