Answer:
$1480.24
Step-by-step explanation:
This will be solved by the formula:
[tex]FV=I(1+r)^t[/tex]
Where
FV is the future value (what we are looking for)
I is the initial amount (which is $1000)
r is the rate of interest per period (8% is annual interest, but the period is SEMI-ANNUAL, that's 6 months, half of yearly. So r would be half of 8%, which is 4% or r = 0.04)
t is the times compounding occurs in the whole time (The whole time period is 5 years, but compounding occurs semi-annually, so 5*2 = 10 times. Thus, t = 10)
plugging the info into the formula we will get our answer.
[tex]FV=I(1+r)^t\\FV=1000(1+0.04)^{10}\\FV=1000(1.04)^{10}\\FV=1480.24[/tex]
