Answer :
Answer:
Karla will earn $2,706.86 in 15 years.
Step-by-step explanation:
The compound interest formula is given by:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this exercise, we have that:
Carla invested $1000 in savings bonds. This means that [tex]P = 1000[/tex]
Semiannually is twice an year, so [tex]n = 2[/tex]
6.75% interest, so [tex]r = 0.0675[/tex].
How much total will Karla earn in 15 years?
This is A when t = 15.
So
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A = 1000(1 + \frac{0.0675}{2})^{2*15}[/tex]
[tex]A = 2,706.86[/tex]
Karla will earn $2,706.86 in 15 years.