Answer:
Account balance after 4years = $8,779.98
Step-by-step explanation:
To find the account balance after 4years,
We apply the compound interest formula:.
I.e:
A = P(1+r/n)^(nt)
Where
A = Account balance
P = principal (investment)
r = interest rate
n = number of times compounded in a year
t = time ( in years)
In this case
A = ?
P = $6,931
r = 6%
n = 2 ( two times per year)
t = 4years
Therefore
A = P(1+r/n)^(nt)
A = 6,931 (1+0.06/2)^(2*4)
A = 6,931 (1+0.03)^8
A = 6,931 (1.03)^8
A = 6,931 (1.2668)
A = $8,779.98
