Answer:
Rounded to the nearest cent, over 5 years she will earn $ 916.89.
Step-by-step explanation:
Since Tabitha found an annuity that pays 7.0% annual interest, compounded semiannually, and she decided to invest $ 650 semiannually in this annuity for 5 years, to determine how much interest she will earn during the 5 years the following calculation must be performed:
650 x (1 + 0.07 / 2) ^ 5x2 = X
650 x (1 + 0.035) ^ 10 = X
650 x 1,035 ^ 10 = X
916,889 = X
Thus, rounded to the nearest cent, over 5 years she will earn $ 916.89.
