Answer:
$12800.85
Step-by-step explanation:
Given information: Principal = $10,000, rate of interest = 0.05, number of times interest compounded=2, time = 5 years.
The formula for amount after compound interest is
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
where,
P is principal.
r is rate of interest.
n is number of times interest compounded per unit period.
t is number of periods.
Substitute the given values in the above formula.
[tex]A=10000(1+\dfrac{0.05}{2})^{2(5)}[/tex]
[tex]A=10000(1.025)^{10}[/tex]
[tex]A=12800.845442[/tex]
[tex]A\approx 12800.85[/tex]
Therefore, the future value of the $10,000 investment in five years is $12800.85.
