Using Compound interest formula:
The exponential function for calculating the amount of money after t years, A(t), where P is the initial amount or principal, the annual interest rate is r and the number of times interest is compounded per year is n, is given by
[tex]A(t) = p(1+ \frac{r}{n} )^{nt} [/tex]
from the given information:
p = 23,400 , r = 0.03 , t =10 and compounded semiannually ⇒⇒⇒ n = 2
Amount after 10 years =
[tex]A(t) = 23400(1+ \frac{0.03}{2} )^{2*10} [/tex] = 31,516.4
