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Yoko deposited $4000 into an account with 5.8% interest, compounded semiannually. Assuming that no withdrawals are made, how much will she have in the account after 8 years?
Do not round any intermediate computations, and round your answer to the nearest cent.

Respuesta :

If no withdrawls were made, the total amount of money Yoko would have in her account in 8 years is $6,319.84.

What is the value of the account after 8 years?

When an account is compounded semiannually, it means both the amount deposited and the interest accrued increases in value twice yearly.

The formula that can be used to determine the value of the account in 8 years is:

FV = P (1 + r)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate = 5.8/2 = 2.9%
  • m = number of compounding = 2
  • N = number of years

$4000 x (1.029)^(2x8) = $6,319.84

To learn more about future value, please check: https://brainly.com/question/18760477

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