Question

An investment of $\$24,\!000$ is made in a government bond that will pay $1\%$ bi-monthly interest (meaning that the investment will increase by $1\%$ every two months). At the end of five years, what is the total number of dollars in this investment

Answer 1

At the end of five years, the total number of dollars in this investment would be $137,843.79.

What would be the value of the account at the end of 5 years?

When the account is compounded bi-monthly, it means that the amount invested and the interest already earned increases in value by 1% every two months.

The formula for calculating the amount that would be in the investment after years is>

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate
• m = number of compounding
• N = number of years

$24,000(1.01)^(5x6) = $137,843.79

To learn more about future value, please check: brainly.com/question/18760477