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CaHeK987 [17]
3 years ago
14

You are investing $500 today. If it is compounded semi-annually at an annual interest rate of 13% for the next 5 years, your inv

estment will grow to_______ after five years.
Business
1 answer:
Ilya [14]3 years ago
4 0

Answer:

Explanation:

In this question, we are expected to know the amount a certain investment would have grown to after 5 years.

Mathematically, the amount is calculated by the formula below:

A = P(1 + r/n)^nt

The parameters have the following values: A = ? P = $500 r = 13% = 13/100 = 0.13 n = 2 ( semi-annually means two times a year) and t = 5 years

A = 500( 1 + 0.13/2)^(2 * 5)

A = 500(1 + 0.065)^10

A = 500( 1.877)

A = 938.56 or simply $939

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