Solution:
Given:
[tex]\begin{gathered} P=\text{ \$25,000} \\ r=\text{ 6\%}=\frac{6}{100}=0.06 \\ n=2(compounded\text{ semiannually)} \\ t=2\text{years} \end{gathered}[/tex]To get the compound amount, we use the amount formula;
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Substituting the values given into the formula,
[tex]\begin{gathered} A=25000(1+\frac{0.06}{2})^{2\times2} \\ A=25000(1+0.03)^4 \\ A=25000(1.03)^4 \\ A=25000\times1.03^4 \\ A=28137.72 \\ \\ \text{Hence,} \\ A=\text{ \$28137.72} \end{gathered}[/tex]
Therefore, the compound amount, if she invests for 2 years, is $28137.72
