Find the compound amount for the deposit. Round to the nearest cent.
Round the compound amount to the nearest cent to get the final answer:
Step 1 :Given that the principal amount (P) is $4500, the annual interest rate (r) is 5.8%, the number of times that interest is compounded per year (n) is 2 (since it's compounded semiannually), and the time the money is invested for in years (t) is 6.
Step 2 :We can convert the annual interest rate from percentage to decimal by dividing it by 100. So,
Step 3 :We can use the compound interest formula
Step 4 :Substitute the given values into the formula:
Step 5 :Calculate the expression to get the compound amount:
Step 6 :Round the compound amount to the nearest cent to get the final answer: