In this problem, we have the principal amount and the interest rate (expressed in decimal) where
However, since the interest is compounded semiannually, it means that the interest is compounded every half of the year, or in other words, twice a year. This means that we divide the interest rate by .
Also, since the interest is compounded semiannually, the number of interest periods is twice a year. Since the period is years,
Thus, our values are
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