Principal, P = $2,000
Duration, t = 20 years
Rate, r = 7.3% = 0.073
Compounding interval, n = 2 (semiannual)
The future value is
[tex]A=P(1+ \frac{r}{n} )^{nt}[/tex]
1 + r/n = 1 + 0.073/2 = 1.0365
nt = 2*20 = 40
Therefore
A = 2000*1.0365⁴⁰ = 8390.78
Answer: $8,390.78
