# Find the value and interest earned if $8906.54 is invested for 9 years at % compounded a) semiannually b) continuosly Isa Trevino 2020-11-29 Answered Find the value and interest earned if$8906.54 is invested for 9 years at $$\%$$ compounded
a) semiannually
b) continuosly

• Questions are typically answered in as fast as 30 minutes

### Solve your problem for the price of one coffee

• Math expert for every subject
• Pay only if we can solve it

Mayme
a) The future value for the amount $8906.54 for 9years at $$3\%$$ compounded semiannually is calculated a follows. $$\displaystyle{A}={P}{\left({1}+\frac{r}{{2}}\right)}^{2}{t}{\left(\text{semiannually}\right)}$$ $$\displaystyle{A}={8906.4}{\left({1}+\frac{0.03}{{2}}\right)}^{{{\left({2}\cdot{9}\right)}}}$$ $$\displaystyle=\{11643.88}$$ b) The future value for the amount$8906.54 for 9years at $$3\%$$ compounded continuously is calculated a follows.
Future value $$\displaystyle={A}{e}^{r}{t}$$
$$\displaystyle={\left({8906.54}\right)}{e}^{{{\left({0.03}\right)}{\left({9}\right)}}}$$
$$\displaystyle=\{11667.25}$$
Interest earned $$\displaystyle={A}-{P}$$
$$\displaystyle={11667.25}-{8906.54}$$
$$\displaystyle=\{2760.71}$$
###### Not exactly what youâ€™re looking for?
content_user

Answer is given below (on video)