CALC
posted by Paisley .
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?

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.
Respond to this Question
Similar Questions

Engineering economy
General Electric issued 1000 debenture bonds 3 years ago with a face value of $5000 each and a bond interest rate of 8% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the … 
math/algebra
Compounded semiannually. P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P(1+r/2)^2represents the value of the investment after 1 year. Rewrite this expression … 
College Algebra
Compounded semiannually. P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P(1+r/2)^2 represents the value of the investment after 1 year. Rewrite this expression … 
Compound interest
Hello My teacher skipped over this and I have no clue how to do this or the equations. Help would be wonderful thank you If 6000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in … 
math
compouned semiannually P dollars is invested at annual rate. r for 1 year. If the intrest is compounded semiannually then the polynomial P(1+r/2)by the second power represent the value of the investment after 1 year. Rewrite this expression … 
Calc
Find the present value of $14000 due in 9 years at the given rate of interest. (a) 2%/year compounded semiannually? 
Finance
Scupper Molly invested $1,800 semiannually for 23 years at 8% interest compounded semiannually. What is the value of this annuity due? 
Math
If a community clinic invested $3,000 in excess cash today, what would be the value of its investment at the end of three years: a. at a 12 percent rate compounded semiannually? 
algebra
Compounded semiannually. P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial represents the value of the investment after 1 year. Rewrite this expression without … 
Business Math
1. Lee Holmes deposited $16,700 in a new savings account at 6% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $41,700 at 6% interest compounded semiannually. At the end of year 6, what is the …