Posted by Paisley on Tuesday, March 24, 2009 at 11:49am.
If 42600 dollars is invested at an interest rate of 5 percent per year, compounded semiannually.
What does semiannually mean? to find the values at 5 years would you just multiply?

CALC  drwls, Tuesday, March 24, 2009 at 12:27pm
Semiannually means that interest is paid and compounded every six months. The amount added on is 2.5% (1/2 of 5%) each time.
To get the value after five years, multiply by (1.025)^10 = 1.2800845. Note that that is more than 1.25 you would get by not compounding.
You end up with
$53,531.60. That might be a few cents off, depending upon how pennies get rounded off each time.
Answer This Question
Related Questions
 Calc  Find the present value of $14000 due in 9 years at the given rate of ...
 algebra  Compounded semiannually. P dollars is invested at annual interest rate...
 College Algebra  Compounded semiannually. P dollars is invested at annual ...
 math/algebra  Compounded semiannually. P dollars is invested at annual interest...
 math  compouned semiannually P dollars is invested at annual rate. r for 1 year...
 Engineering economy  General Electric issued 1000 debenture bonds 3 years ago ...
 Finance  Scupper Molly invested $1,800 semiannually for 23 years at 8% interest...
 Math  If a community clinic invested $3,000 in excess cash today, what would be...
 Compound interest  Hello My teacher skipped over this and I have no clue how to...
 Business Math  1. Lee Holmes deposited $16,700 in a new savings account at 6% ...
More Related Questions