Question

What amount of money will accumulate to $192,400 in 6 years and 11 months at the interest rate of 5.36% compounded semi-annually? $_______

Answer 1

We will have the following:

`\begin{gathered} 192400=A(1+(0.0536)/(2))^((11/12)(2))\Rightarrow A=(192400)/((1+0.0536/2)^((11/12)(2))) \\ \\ \Rightarrow A=183293.7505...\Rightarrow A\approx18329375 \end{gathered}`

So, the original quantity was approximately $183 293.75.