The parent of a newborn child invest $500 in a plan

The child will have $2895.81 when it turns 18.

Step-by-step explanation:

Semiannual compounding corresponds to compounding 5% twice a year.

After 1st (6mo) period, the initial deposit $500 grows to 500*1.05. After the second period, it grows to 500*1.05*1.05. After the n-th period, it grows to .

To answer the question we need to consider the fact that 18 years correspond to 36 half-year periods, and then we're ready to roll:

The child will have $2895.81 when it turns 18.

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step-by-step explanation: