Answer:
Option C [tex]I=\$2,362.92[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=4\ years\\ P=\$3,979\\ r=0.12\\n=2[/tex]
substitute in the formula above
[tex]A=\$3,979(1+\frac{0.12}{2})^{2*4}[/tex]
[tex]A=\$6,341.92[/tex]
Find the amount of interest
[tex]I=\$6,341.92-\$3,979=\$2,362.92[/tex]
