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Llana [10]
3 years ago
7

What is the amount of a $4,000.00 annuity due at 12 percent compounded semiannually for 3 years?

Mathematics
1 answer:
Dmitriy789 [7]3 years ago
3 0

Answer:

$ 5674.076

Step-by-step explanation:

The question is on compound interest

The formulae = A= P(1+ r/n) ^nt .......where P is the principal amount, r is the rate of interest in decimal, n is number of compoundings per year and t is the total number of years.

Given; P= $4,000.00 , r=12/100=0.12, n=2 and t=3

Substituting values in the equation  A= P(1+ r/n) ^nt

A= 4000 ( 1+0.12/2)^2×3

A=4000(1.06)^6

A=$ 5674.08

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