Find the amount (future value) of the ordinary annuity. (round your answer to the nearest cent.) $1500/semiannual period for 8 y

Question

Marrrta [24]

3 years ago

15

Find the amount (future value) of the ordinary annuity. (round your answer to the nearest cent.) $1500/semiannual period for 8 y

ears at 2.5%/year compounded semiannually

Mathematics

1 answer:

mixer [17] · Answer 1 · 2021-12-02T07:21:52+03:00

mixer [17]3 years ago

6 0

The formula of the future value of an annuity ordinary is
Fv=pmt [((1+r/k)^(kn)-1)÷(r/k)]
Fv future value?
PMT semiannual payment 1500
R interest rate 0.025
K compounded semiannual 2
N time 8 years
Fv=1,500×(((1+0.025÷2)^(2×8)
−1)÷(0.025÷2))
=26,386.75

Hope it helps!