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If every six months the capital earn 10% interest which is compounded, at the end of 5 years, the interest will be 31875.

If the annual interest rate is 10%, it makes no difference how often it is compounded. The six monthly interest rate is adjusted - to 4.88% rather than 5% - so that the total interest for a year is 10%.

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Q: How much will 20k earn in 5 yrs if invested at 10 percent compounded semiannually?
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