Answer :
Amount after 5 years is 1209.51
Explanation:Principal = P = 900
rate = r = 6% = 0.06
time = t = 5 years
n = number of times compounded in a year
n = semi -annual = twice in a year
n = 2 times
FV = future value = amount after 5 years
We would apply the compound interest formula:
[tex]FV\text{ = P(1 +}\frac{r}{n})^{nt}[/tex]inserting the values into the formula:
[tex]\begin{gathered} FV\text{ = }900(1\text{ + }\frac{0.06}{2})^{2\times5} \\ FV=900)(1+0.03)^{10} \end{gathered}[/tex][tex]\begin{gathered} FV=900(1.03)^{10} \\ FV\text{ = 900}(1.3439) \\ FV\text{ = 1209.51} \end{gathered}[/tex]