value of $25000.00 compounded semi annually at 7% for 5 years
http://math.about.com/library/weekly/aa042002a.htm
Semi Annually = P (1 + r/2)^2
http://www.mathsisfun.com/money/compound-interest-periodic.html
To calculate the value of $25000.00 compounded semi-annually at 7% for 5 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = future value of the investment
P = principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
Let's plug in the given values:
P = $25000.00
r = 7% = 0.07 (converted to decimal)
n = 2 (semi-annually compounded)
t = 5 years
A = 25000(1 + 0.07/2)^(2*5)
A = 25000(1 + 0.035)^10
Now we can calculate the value:
A = 25000(1.035)^10
A = 25000 * 1.402551925
A ≈ $35063.80
Therefore, the value of $25000.00 compounded semi-annually at 7% for 5 years is approximately $35063.80.