Answer:
The account balance will be $8,014.32
Step-by-step explanation:
To calculate the future value of a certain amount invested and compounded periodically, the following formula is used:
[tex]FV= PV{(1+\frac{r}{n})^{n*t }[/tex]
where:
FV = Future value = ???
PV = Present value = $5,838
r = interest rate in decimal = 4% = 0.04
n = number of compounding period per year = 2
t = time in years
[tex]FV= 5,838{(1+\frac{0.04}{2})^{2*8 }[/tex]
[tex]FV= 5,838{(1+(0.02))^{16 }[/tex]
[tex]FV= 5,838 * 5,838 = 8,014.32[/tex]
FV = $8,014.32
