(b) \( \$ 6000 \) invested at \( 7 \% \) compounded semiannually for ten years

Did you know that compounding can turn your money into a financial superstar? With semiannual compounding, your investment of \( \$6000 \) at a \( 7\% \) annual interest rate actually compounds every six months. That means you will earn interest on your interest twice a year, leading to greater growth over time. By the end of ten years, your \( \$6000 \) investment will assemble into a delightful sum, estimated at around \( \$11,300 \) through the magic of compound interest! Now, understanding the formula can be a game changer. The compound interest formula is \( A = P(1 + \frac{r}{n})^{nt} \), where \( P \) is the principal amount, \( r \) is the annual interest rate, \( n \) is the number of times it compounds per year, and \( t \) is the number of years. One common mistake is forgetting to convert the annual rate to a decimal or miscalculating the compounding periods. Make sure to double-check your calculations for maximum gains!