### Question Description

A business person invest $3281 at 2% compounded semiannually for 2 years. What is the future value of investment? How much interest will be earned over a two year period? Round to nearest cent as needed.

## Explanation & Answer

A=P(1+r/100)^n

= 3281(1+1/100)^4

= 3281(101/100)^4

=3281(1.01)^4

=3281 *1.040

= 3412.24

future value $ 3412

interest = amount - principal

=3412-3281

=$ 131