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Q2 Lea invests $8,333 in a savings account with a fixed annual interest rate of 8% compounded 2 times per year.What will the account balance be after 12 years?

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Answered by GPT-5 mini AI
Use A = P(1 + r/n)^(nt).

P = 8333, r = 0.08, n = 2, t = 12:

A = 8333(1 + 0.08/2)^(2·12) = 8333(1.04)^24 ≈ 8333·2.563302564 ≈ $21,360.00.

So the account balance after 12 years is about $21,360.00.