$10,295.89
The formula for calculating the compound interest is given as show below
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
• P is the, principal ,= $7500
,• r is the, rate =, 4% = 0.04
,• t is the, time ,= 8 years
,• n = 2 (compounding time)
Substitute the parameters into the formula
[tex]\begin{gathered} A=7500(1+\frac{0.04}{2})^{2(8)} \\ A=7500(1+0.02)^{16} \\ A=7500(1.02)^{16} \\ A=7500(1.3728) \\ A=\$10295.89 \end{gathered}[/tex]Hence the amount it will cost after 8 years if you invest $7500 at 4% compounded semi-annually is $10,295.89
