Compound Interest, SMB-024

$9000 is invested at a rate of 8% per annum compounding half yearly.

Determine the value, to the nearest dollar, of this investment after four years. (2 marks)

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`$12\ 317`

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`text(Interest rate)\ (r) = \frac{8%}{2} = \frac{0.08}{2} = 0.04\ \ \text{(per 6 months)}`

`text{Compounding periods}\ (n) =4 xx 2=8`