As part of his retirement planning, Mr. Martin purchases an annuity that pays 4% compounded semi-annually. If the semiannual payment is $8,000, how much will Mr. Martin have saved in 10 years, correct to the nearest whole dollar?

Question

kropot72 · Answer

Saved amount in 10 years is found from the following assuming the 4% is an annual rate of interest:
Saved amount = S = 8000(1 + (0.04/2))^(10*2)

$$S=8000\times(1+0.02)^{20}$$
S = $11,888 to the nearest dollar

anonymous · Answer

I found as $$194,379

kropot72 · Answer

How did you find that result? Did you calculate in the same way that I did.
Also there is an error in the posting of your result. Please check.