Answer:
FV= $67,952.83
Step-by-step explanation:
Giving the following information:
Semiannual deposit= $2,630
Number of periods= 11*2= 22 - 1= 21
Interest rate= 0.03/2= 0.015
We need to determine the future value at the last deposit. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= semiannual deposit
FV= {2,630*[(1.015^21) - 1]} / 0.015 + {[2,630*(1.015^21)] - 2,630} + 2,630
FV= 64,357.47 + 965.36 + 2,630
FV= $67,952.83
