Pierre deposits $9,000 in a certificate of deposit that pays 8% interest, compounded semiannually. How much interest does the account earn in the first six months? What is the balance after six months?

P = $9,000, the principal

r = 8% = 0.08, the interest rate

n = 2, semiannual compounding

After 6 months, the interest is

9000 * 0.08 = $720

The balance after 6 months is

9000 + 720 = $9720

Answer

Interest = $720

Balance = $9,720