Find the balance of $7,000 deposited at 4% compounded semi-annually for 2 years

The balance will be $7,577.03.

Step-by-step explanation:

The compound interest formula is given by:

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.

In this problem, we have that:

Semianually means twice a year, so

We want to find A when .

So

The balance will be $7,577.03.