Given: An investment of $20,000 for 5 years at an interest rate of 6.5%.
Required: To determine the amount if the money is compounded semi-annually.
Explanation: The formula for compound interest is as follows-
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Here,
[tex]\begin{gathered} P=20000 \\ t=5 \\ n=2 \\ r=\frac{6.5}{100} \\ =0.065 \end{gathered}[/tex]
Substituting the values into the formula as follows-
[tex]\begin{gathered} A=20000(1+\frac{0.065}{2})^{2\times5} \\ \end{gathered}[/tex]
Further solving for amount gives-
[tex]A=27,537.89[/tex]
Final Answer: The accumulated value is $27,537.89
