Question

Need Help ASAP!!

Answer 1

Answer:

$1480.24

Step-by-step explanation:

This will be solved by the formula:

$FV=I(1+r)^t$

Where

FV is the future value (what we are looking for)

I is the initial amount (which is $1000)

r is the rate of interest per period (8% is annual interest, but the period is SEMI-ANNUAL, that's 6 months, half of yearly. So r would be half of 8%, which is 4% or r = 0.04)

t is the times compounding occurs in the whole time (The whole time period is 5 years, but compounding occurs semi-annually, so 5*2 = 10 times. Thus, t = 10)

plugging the info into the formula we will get our answer.

$FV=I(1+r)^t\\FV=1000(1+0.04)^{10}\\FV=1000(1.04)^{10}\\FV=1480.24$