Question

$30,000 bond with 6% interest compounded semiannually , how much money after 18 years? Round the answer to the nearest cent.

Answer 1

Given:

Principal amount $30000.

Rate = 6%

Number of years = 18.

The amount after 18 years is calculated as,

`\begin{gathered} A=P(1+(R)/(100))^(nt) \\ P=30000 \\ R=6 \\ n=2\text{ ( Compunded semiannually)} \\ t=18 \\ A=30000(1+(6)/(2*100))^(2*18) \\ A=30000(1.03)^(36) \\ A=86948.35 \end{gathered}`

Answer: The total amount is $86948.35