Question

Find the accumulated value of an investment of 12,000 at 8 % compounded semiannually for 11 years

Answer 1

The "compound amount" formula is A = P(1+r/n)^(nt),
where P=original investment, r=interest rate as a decimal fraction; n=number of compounding periods, and t=number of years.

Then A = $12000 * (1+0.08/2)^(2*11) 
             = $12000(1.04)^(22)  =  $28,439.03  (answer)