Given:
Initial deposit = $8500
rate of interest = 5% compounded annuallly
time (t) = 6 years
If Ao is invested at an annual interest rate r and compounded semiannually, the amount At after t years is given by the formula:
[tex]A_t\text{ = }A_0(1\text{ + }\frac{r}{2})^{2t}[/tex]The compound amount in 6 years:
[tex]A_t\text{ = 8500 }\times\text{ (1 + }\frac{0.05}{2})^{2\times6}[/tex]Simplifying we have:
[tex]\begin{gathered} A_t\text{ = 8500 }\times1.025^{12} \\ =\text{ 11431.56} \end{gathered}[/tex]Answer:
$11431.56
