The future amount for a compound interest can be calculated by the formula
Where A = Final amount
p = initial principal balance
r = interest rate
n = number of times interest is applied per period
t = number of times period elapses
For this question,
p = $10,000
r = 6%
The interest is compounded semi-annually, which means twice every year, hence
n= 2
t = 16
substituting the values into the formula. we have
A = $25,750.
Hence, in 16 years, the bond will worth
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