Answer:
Amount after 5 year will be $1074.5
Explanation:
We have given principal amount P = $600
Time t = 5 year
Rate of interest r = 12%
It is given that amount is compounded semiannually
So time period = 5×2 = 10 period
And rate of interest semiannually will be [tex]=\frac{12}{2}=6[/tex] %
We have to find future value after 5 year
Future value is given by [tex]A=P(1+\frac{r}{100})^n[/tex]
So [tex]A=600\times (1+\frac{6}{100})^{10}[/tex]
[tex]=600\times1.06^{10}[/tex]
[tex]=600\times1.79=1074.5[/tex]
So amount after 5 year will be $1074.5
