SOLUTION: Is B correct? I'm checking my answers. 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.

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Question 1160604: Is B correct? I'm checking my answers.

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?
A. $9,000
B. $13,114
C. $15,840
D. $18,000

The question is provided in the link here: https://i.imgur.com/4Jp2KGd.png
Found 2 solutions by MathLover1, ikleyn:
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

yes, B is correct
A+=+13113.73
A+=+P+%2B+I where
P+%28principal%29+=9000.00
I+%28interest%29+=4113.73

Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

Since the account is compounded, use the formula for compounded account


    Future value = 9000%2A%281%2B+0.038%2F2%29%5E%282%2A10%29 = 13,113.73 = 13,114 (rounded).   ANSWER