Final answer:
To determine the number of compounding periods for an investment of $20,000 at an 8% interest rate compounded semiannually over 14 years, one must multiply the total years by the number of times interest is compounded per year. Since it is compounded semiannually, the calculation would be 14 years multiplied by 2, for a total of 28 compounding periods.
Step-by-step explanation:
The question involves calculating the number of compounding periods for an investment with a given interest rate and time frame. When $20,000 is invested for 14 years at an interest rate of 8% compounded semiannually, the number of compounding periods can be found by multiplying the number of years by the number of times interest is compounded per year.
In this case, compounding happens semiannually, which means twice a year. Therefore, the number of compounding periods (N) is:
N = Total years × Number of times compounded per year
N = 14 years × 2 times/year
N = 28 compounding periods