Sal Travato invested $5000 in a corporate retirement account that pays 10% annual interest compounded semiannually. Find the value of his investment after 10 years. Round your answer to the nearest cent.

Question

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The formula for compound interest is A = P(1 + r/n)^(nt), where P is the principal amount ($5000), r is the annual interest rate (0.10), n is the number of times interest is compounded per year (2 for semiannually), and t is the number of years (10). Plugging in these values gives A = 5000(1 + 0.10/2)^(2*10) = 5000(1.05)^20 = $13,266.49.

Sal Travato Invested $5000 in a Corporate Retirement Account That