Question

Lachlan invested $4300 over 5 years at 4.6% p.a., compounded every 6 months. Find the total value of his investment.

Answer 1

`\fbox{\begin{minipage}{13em}approximately 5397.9 dollar\end{minipage}}`

Explanation:

Given:

Lachlan invested $4300 over 5 years at 4.6% p.a., compounded every 6 months.

Solve for:

Total value of his investment.

Step 1: Define the formula to calculate the total value of Lachlan's investment

Total value = Principal x (1 + rate/2)^(Year x 2)

(the rate is divided by 2 and the year is multiplied by 2 because this is compounded semi-annual, not compounded annual)

Step 2: Perform the calculation:

With Principal = 4300$, Rate = 4.6% =4.6/100 = 0.046, Year = 5

=> Total value = 4300 x (1 + 0.046/2)^(5 x 2) ≈ 5397.9$

Hope this helps!

:)