How to find the compound amount for the following deposit ?

[fawazalusail]

Find the compound amount for the following deposit.

$19,000 at 6% compounded semi-annually for 5 years.
----------------------

i= 0.06/2

n= 2*5

n= 10

A= 19,000(1+0.06/2)^10

A= 19,000(1.0300)^10.

A= $25,534.41

What I can't understand is how do we get the "2". Thanks.

 

[Deleted member 4993]

Find the compound amount for the following deposit.

$19,000 at 6% compounded semi-annually for 5 years.
----------------------

i= 0.06/2

n= 2*5

n= 10

A= 19,000(1+0.06/2)^10

A= 19,000(1.0300)^10.

A= $25,534.41

What I can't understand is how do we get the "2". Thanks.

Key-word missing from your problem-statement is APR (annual percentage rate)

The problem should read:

Find the compound amount for the following deposit.

$19,000 at 6% APR compounded semi-annually for 5 years.

How many times a year the interest is calculated ?

In that time period - what should be the interest rate?