monika invests in a real - estate project that earns 6.7% compounded semiannually. if monikas initial…

Explanation:

Step1: Identify 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), $n$ is the number of times interest is compounded per year, and $t$ is the number of years. Here, $P=$10000$, $r = 0.067$, $n = 2$ (semi - annual compounding), and $t = 9$.

Step2: Calculate the amount $A$

Substitute the values into the formula: [ \begin{align*} A&=10000(1 +\frac{0.067}{2})^{2\times9}\ &=10000(1+ 0.0335)^{18}\ &=10000\times(1.0335)^{18} \end{align*} ] Using a calculator, $(1.0335)^{18}\approx1.84777$. So, $A = 10000\times1.84777=$18477.7$.

Step3: Calculate the interest $I$

The interest $I=A - P$. So, $I=18477.7−10000=$8477.70$.

Answer:

$8477.70$