At the end of a 5-year term, what is the balance of an $8,000 investment at a rate of 1.8 percent compounded semi-annually? Round to the nearest dollar.

=$8750

Explanation:

Principal amount 8000

Interest rate 1.8 percent per year = 0.018

Number of times compounded per year 2

Number of years 5

Amount after 5 years = 8000 (1 + 0.018 / 2) ^ (10)

= 8000 (1.009) ^ (10)

Amount after 5 years = $ 8,749.87

=$8750