SOLUTION: If $20,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value of the investment after 5 years.

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Question 961759: If $20,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value of the investment after 5 years.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28+n%2At+%29+
++P+=+20000+
+r+=+2%25+
+n+=+2+
+t+=+5+
+A+=+20000%2A%28+1+%2B+.02%2F2+%29%5E%28+2%2A5+%29+
+A+=+20000%2A1.01%5E10+
+A+=+20000%2A1.104622+
+A+=+22092.44+
After 5 years the value is $22,092.44
check:
+22092.44+=+20000%2A1.01%5E10+
+1.104622+=+1.04622+
OK