Question

Find the future value of $3000 invested at 6% p.a interest compounded half-yearly for 4 years

Answer 1

Answer:

F=$3810

Step-by-step explanation:

$F=P(1+i)^{n}$

F= future value

P= present value

i = interest

n= number of times money compounded

P=$3000 i=6%   n = 2 X 4= 8

As this is semiannual so 6%/2=3%

$F=P(1+0.03)^{8}$

$F=3000(1.03)^{8}$

$F=3000(1.267)$

$F=3810$