MYP Mathematics, Financial Mathematics, Compound InterestCompounded semi-annually means interest is added to the principal semi-annually.
The general compounding formula is:
^n)
and
^n –P)
where F is the future value of the investment, P the principal, r is the interest rate per compound period and n is the number of compounding periods.
Regarding your question about the interest paid we will use the following formula
^10 –\$37,200 =\$8,146.59)
Hope these help!