Based on the amount deposited and the interest rate, the accumulated amount after 2.5 years is KSh 405,745.92.
Period of Compounding
First find the period of compounding:
= Number of years x Period of compounding
= 2.5 x 2 a year
= 5 semi annual periods
Periodic interest
Interest is:
= 6% / 2
= 3% per semi annum
Amount accumulated
= Amount deposited x ( 1 + rate) ^ number of years
= 350,000 x ( 1 + 3%) ⁵
= KSh 405,745.93
In conclusion, amount accumulated is KSh 405,745.92.
Find out more about future value compounding at https://brainly.com/question/25805668.
