SOLUTION
Given the question in the question tab, the following are the solution steps to answer the question.
STEP 1: Write the formula for calculating compound amount
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A = final compounded amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
STEP 2: Write the given data
Semiannually means that n will be 2
[tex]P=14,800,r=\frac{6}{100}=0.06,n=2,t=4[/tex]STEP 3: Calculate the compound amount
[tex]\begin{gathered} A=14800(1+\frac{0.06}{2})^{2\times4}\Rightarrow A=14800(1+0.03)^{2\times4} \\ A=14800(1.03)^8 \\ A=14800\times1.266770081 \\ A=\text{\$}18,748.1972 \end{gathered}[/tex]Hence, the compounded amount after 4 years is $18,748.1972
