You invest $100,000 in an account with an annual interest rate of 4.5%, compounded semiannually. How much money is in the account after 10 years? Round your answer to the nearest whole number.

Answer 1

Pt = Po(1+r)^n.

r = (6/12) * 4.5% = 2.25% = 0.0225 =
Semi-annual % rate expressed as a decimal.

n = 2 comp./yr * 10 yrs. = 20 Compounding periods.

Pt = 100,000(1.0225)^20 = $156,050.92.