Question 8 • LVA - Mathematical Modeling - Spring
With semiannual compounding, the account earns 8% ÷ 2 = 4% per half-year, for 10 × 2 = 20 periods. The $3,000 grows to $3,000(1.04)^20 ≈ $6,573.37. Brian needs $7,000 − $6,573.37 = $426.63 more, so the correct choice is $426.63.
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