An initial investment of $1000.00 is appreciated for 5 years at 15% interest compounded semiannually. How much money is in the account after the period ends?
Pt = Po(1+r)^n,
r = (15%/12mo)6mo = 7.5% = 0.075 = Semi-annual % rate exprssed as a decimal.
n = 2 comp./yr * 5 yrs = 10 compounding
periods.
Pt = $1000(1.075)^10 = $2061.03.