Poonam wants to invest in an account today to have 4000 at the end of 8 years. If she can invest at 4.25% compounded semi-annually, how much does she need to invest? A) 2857.24 B) 2055.15 C) 3380.68 D) 2867.16

Here's how to solve this compound interest problem:**Understanding the Formula**The formula for compound interest is:A = P(1 + r/n)^(nt)Where:* A = the future value of the investment/loan, including interest* P = the principal investment amount (the initial deposit or loan amount)* r = the annual interest rate (decimal)* n = the number of times that interest is compounded per year* t = the number of years the money is invested or borrowed for**Applying the Formula**In Poonam's case:* A = 4000 / (1 + 0.0425/2)^(2*8)P = 4000 / (1.02125)^16P = 2867.16**Answer:**The correct answer is D) $2867.16