Answer: $ 90305.56
Step-by-step explanation:
To find the future value of the amount, use the compound interest formula as follows:
A = P( 1 + i/m)^mn
Where; A = Future amount after n years;
P = Principal amount or amount deposited which is equal to $50, 000 in this question.
i = interest rate charge which is 6% in this case
m = number of times compounded per year, thus, m = 2 in this case since it is compounded semi-annually.
n = number of years which is 10 years in this case.
Substituting in the equation:
A = 50 000( 1 + 0.06/2) ^ 2(10)
= $ 90305.56
