Monika invests in a real estate project that earns 6.2% compounded semiannually. If her initial deposit is $10,000, how much interest will she earn if she keeps the investment for 7 years? (Round your answer to the nearest cent.)

To solve this problem, we'll use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money after interest,
- $P$ is the principal (initial deposit),
- $r$ is the annual interest rate (as a decimal),
- $n$ is the number of times the interest is compounded per year,
- $t$ is the number of years.

Given:
- $P = 10,000$,
- $r = 6.2\% = 0.062$,
- $n = 2$ (since the interest is compounded semiannually),
- $t = 7$ years.

Let's calculate the total amount $A$, and then subtract the initial deposit to find the interest earned:

\[
A = 10,000 \left(1 + \frac{0.062}{2}\right)^{2 \times 7}
\]

Let me calculate that.Monika will earn **$5,332.79** in interest if she keeps the investment for 7 years.

Do you want more details on this, or do you have any other questions?

Here are 5 related questions for further exploration:
1. What would the interest be if the rate was compounded quarterly instead?
2. How much would Monika earn if she invested for 10 years instead of 7?
3. What would happen if the interest rate increased to 7.5%?
4. How does the formula for simple interest differ from compound interest?
5. What is the impact of different compounding periods (monthly, daily, etc.) on the final amount?

**Tip:** The more frequently interest is compounded, the greater the total amount you earn.

Learn how to calculate the interest Monika earns from investing $10,000 at 6.2% compounded semiannually over 7 years. This example uses the compound interest formula and is suitable for students in Grades 9-12. Understand key financial concepts such as compound interest and exponential growth.

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