Answer:
$189,292.92
Step-by-step explanation:
Using the compound interest formula to get the equivalent amount after 5 years;
A = P(1+r/n)^nt
P is the principal = 120,000
r is the rate = 10% = 0.1
t is the time = 5 years
n is the time of compounding = 1/2 = 0.5(semi annual interest)
Substitute into the formula;
A = 120,000(1+0.1/0.5)^(5)(0.5)
A = 120,000(1+0.2)^2.5
A = 120,000(1.2)^2.5
A = 120,000(1.5774)
A = 189,292.92
Hence the company issue is $189,292.92
