If you deposit $4500 into an account paying 7% annual interest compounded semi anualy, how much money will be in the account after 9 years?

Answer: $8359 will be in the account after 9 years.

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 = 4500

r = 7% = 7/100 = 0.07

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

t = 9 years

Therefore,

A = 4500 (1+0.07/2) ^2 * 9

A = 4500 (1+0.035) ^18

A = 4500 (1.035) ^18

A = $8359