If you deposit $4000 into an account paying 6% annual interest compounded semi-
annually, how
much money will be in the account after 5 years?
$5387.42
$5375.66
$6546.61
$4706.14

B. $5,375.66

Step-by-step explanation:

Lets use the compound interest formula provided to solve this:

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 6% into a decimal:

6% -> -> 0.06

Since the interest is compounded semi-annually, we will use 2 for n. Lets plug in the values now:

Your answer is B. $5,375.66