Question

What is the accumulated value if the money is compounded semiannually?

Answer 1

Given:

`\begin{gathered} P=20,000 \\ t=6years \\ r=5.5\% \end{gathered}`

Required:

To find the accumulated value.

Step-by-step explanation:

Consider

`A=P(1+(r)/(n))^(nt)`

Here

`\begin{gathered} =20000(1+(0.055)/(2))^(2*6) \\ \\ =20000(1+0.0275)^(12) \\ \\ =27,695.68 \end{gathered}`

Final Answer:

The accumulated value is $27,695.7