Rigoberto invests $8,000, at 65 interest, compounded semiannually for 1 year. Use the compound interest formula to calculate the compound interest for his investment.

a. $8,417.50
b. $400.00
c. $ 487.20
d. $8,400.00

Question

Rigoberto invests $8,000, at 65 interest, compounded semiannually for 1 year. Use the compound interest formula to calculate the compound interest for his investment.

a. $8,417.50
b. $400.00
c. $ 487.20
d. $8,400.00

anonymous · Answer

Don't you mean 6% interest?

(8000)(1.03)^2= future value = 8487.20
subtract his investment to get his interest.

anonymous · Answer

$8,487.20-$8,000.00=$487.20