Final answer:
To find the accumulated value of an investment compounded semiannually, we can use the formula A = P(1 + r/n)^(nt). Plugging the given values, we find that the accumulated value is approximately $30,129.90.
Step-by-step explanation:
To find the accumulated value of an investment compounded semiannually, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
- A = accumulated value
- P = principal amount = $25,000
- r = annual interest rate = 6%
- n = number of times interest is compounded per year = 2 (semiannually)
- t = number of years = 4
Plugging the values into the formula:
A = 25000(1 + 0.06/2)^(2*4)
A ≈ $30,129.90
Therefore, the accumulated value of the investment after 4 years is approximately $30,129.90.