Find the accumulated value of an investment of $15,000 at 7% compounded semiannually for 4 yrs

Answer 1

V = Po(1+r)^n.

r = (7% / 2) / 100% = 0.035 = Semi-annual % rate expressed as a decimal.

n = 2 comp./yr * 4yrs = 8 Compounding
periods.

V = $15,000(1.035)^8 = $19,752.14.