Answer:
The interest is [tex]I=\$74.46[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=6/12=0.5\ years\\ P=\$5,300\\ r=0.028\\n=4[/tex]
substitute in the formula above
[tex]A=5,300(1+\frac{0.028{4})^{4*0.5}[/tex]
[tex]A=5,300(1.007)^{2}[/tex]
[tex]A=\$5,374.46[/tex]
Find the interest
[tex]I=A-P[/tex]
substitute
[tex]I=\$5,374.46-\$5,300=\$74.46[/tex]
