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

User Colymba
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1 Answer

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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

User Byzantian
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