The multiple choice answers are , $15,680.20, $15,072.97, $8498.55, $8492.65
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9 years is 18 periods of compounded interest. 9% per year is 4.5% semiannually. Growth is 1.045^18=2.2085 approx, applied to $1700=$3754.41. Growth is 1.09^18=4.717 at 9% semiannually, applied to $1700=$8019.10.

Neither of these matches the answers. The answers correspond to these growths: 9.2236, 8.8665, 4.9991, 4.9957.

The approximate rates are: 13.13% semiannually; 12.89% semiannually; 9.35% semiannually; 9.35% semiannually.

It appears that the quoted 9% semiannually should have been 9.35% or thereabouts.

by Top Rated User (1.2m points)

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