Question

Find the amount (future value) of the ordinary annuity. (round your answer to the nearest cent.) $1500/semiannual period for 8 years at 2.5%/year compounded semiannually

Answer 1

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!