Jenny plans to invest $9,000. America's Bank offers a 10 year CD at an annual interest rate of 3.8% compounding interest semi-annually. How much is her investment worth at the end of the 10 years?

Group of answer choices

$9,000

$13,114

$15,840

$18,000

Answer: $13,114

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 9000

r = 3.8% = 3.8/100 = 0.038

n = 2 because it was compounded 2 times in a year.

t = 10 years

Therefore,.

A = 9000 (1+0.038/2) ^2 * 10

A = 9000 (1+0.019) ^20

A = 9000 (1.019) ^20

A = $13114