Brian wants to have $7000 in the bank in 10 years. he deposits $3000 today at 8% interest compounded semiannually, after keeping the money in the bank for 10 years, how much more money will he need to add to his account to reach the desired balance of $7000? a. $341.08 c. $1600 b. $426.63 d. $0

He need to add approximately $ 426.63 to his account to reach the desired balance of  $7000.

Step-by-step explanation:

Here, the principal amount, P = $ 3000,

Semiannual rate of interest, r = 8 %

Time, t = 10 years,

Hence, the amount after 10 years, which is compounded with the semiannual rate of 8% for 10 years,

Thus, the amount, need to add in the balance to reach the amount of $ 7000 = 7000 - 6573.3694291 = 426.6305709 ≈ $ 426.63

⇒ He need to add approximately $ 426.63 to his account to reach the desired balance of  $7000.

⇒ Option B is correct.