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...
- another problem for checking - algebra - P dollars is invested at annual ...