Answer:
$2421.95
Step-by-step explanation:
To calculate the final value from compound interest, we can use the formula
A = P(1+r/n)^(nt), where A represents the final amount, P is the initial amount, r is the rate, n is the number of times compounded per time period, and t is the amount of time.
Here, P is 2000, 1.2% is the rate (to convert to a decimal, we can divide by 100 to get 0.012), n = 2 because it is compounded semi-annually, and 16 is the number of years, or t. Plugging these in, we get
2000(1+0.012/2)^(2*16) = 2421.95
