Answer:
The future value of annuity is $27850302.48
The Investment amount is $ 37900.259
The compound interest is $ 662799.741
Step-by-step explanation:
Given as :
The due amount = $ 700700
the rate of interest compounded semiannually = 88%
The time period = 4 years
Let The investment principal = $ P
The interest = CI
Let The future value of annuity = FV
Now, <u>The future value of Annuity method</u>
FV = Amount × 
Or, FV = $700700 × 
Or, FV = $700700 × 
Or, FV = $700700 × 39.7464
∴ FV = $27850302.48
<u>Now, from compounded method</u>
Amount = Principal × 
Or, $ 700700 = P × 
Or, $ 700700 = P × 
or, $ 700700 = P × 18.488
∴ P =
= $ 37900.259
So, Investment amount = $ 37900.259
Now,
Compound Interest = Amount - Principal
Or, CI = $ 700700 - $ 37900.259
Or, CI = $ 662799.741
Hence The future value of annuity is $27850302.48
The Investment amount is $ 37900.259
The compound interest is $ 662799.741 Answer