Answer:
Amount = $ 9030.56
Step-by-step explanation:
Given: Principal value, P = $ 5000
Rate, R = 6%
Time, T = 10 years
To find: Amount when compounded semiannually
Semiannual means half yearly which implies interest to be calculated twice in a year.
\(\implies R=\frac{6}{2}=3\) %
n ( no. of times interest to be applied ) = 2 × 10 = 20
using compound interest formula of calculating amount we get,
\(A=P\times(1+\frac{R}{100})^n\)
\(A=5000\times(1+\frac{3}{100})^{20}\)
\(A=5000\times(\frac{103}{100})^{20}\)
\(A=5000\times1.80611123467\)
\(A=9030.55617335\)
⇒ A = $ 9030.56
Therefore, Amount = $ 9030.56
