Remember that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$ 45,000
r=6%=0.06
n=2
t=5 years
substitute in the given formula
[tex]A=45,000(1+\frac{0.06}{2})^{2\cdot5}[/tex][tex]\begin{gathered} A=45,000(1.03)^{10} \\ A=\$60,476.24 \end{gathered}[/tex]
