Respuesta :
The compound interest when $7300 when interest is compounded semi annually is $2482.70.
The compound interest when $7300 when interest is compounded monthly is $1972.73.
What is the compound interest?
An investment earns compound interest when both the amount invested and the interest accrued increases in value at predetermined time intervals.
The formula to represent compound interest is :
FV - amount invested
FV = P (1 + r)^nm
- FV = Future value
- P = Present value
- R = interest rate
- m = number of compounding
- N = number of years
a. 7300 x [1 + (0.1/2)]^(3 x 2) = 9782.70
Compound interest = 9782.70 = 7300 = $2482.70
b. 7300 x [1 + (0.08/12)]^(12 x 3) = 9272.73
9272.73 - 7300 = $1972.73
To learn more about compound interest, please check: https://brainly.com/question/26367706
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