find the compound interest and future value. round your answers to the nearest cent. do not round…

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times compounded per year, and $t$ is the number of years. Here, $P=$1435$, $r = 0.008$ (since $0.8%=0.008$), $n = 2$ (compounded semiannually), and $t = 11$ years.

Step2: Calculate the future value $A$

Substitute the values into the formula: [ \begin{align*} A&=1435\times(1 +\frac{0.008}{2})^{2\times11}\ &=1435\times(1+0.004)^{22}\ &=1435\times(1.004)^{22} \end{align*} ] Using a calculator, $(1.004)^{22}\approx1.093777$. Then $A = 1435\times1.093777\approx$1569.57$.

Step3: Calculate the compound interest $CI$

The compound interest is $CI=A - P$. So, $CI=1569.57−1435=$134.57$.

Answer:

The future value is $$1569.57$, and the compound interest is $$134.57$.