Question

What is the future value of a R 75 000 deposit made every 6 months for 3 years using an annual rate of 10% compounded semi-annually?​

Answer 1

Answer:

The future value is: RS 132867.075

Step-by-step explanation:

Given

$PV = 75000$ --- present value

$r = 10\%$ --- annual rate

$n = 6$ --- number of times compounded (3 years/ 6 months)

Required

The future value

This is calculated as:

$FV =PV * (1 + r)^n$

$FV = 75000 * (1 + 10\%)^6$

$FV = 75000 * (1 + 0.10)^6$

$FV = 75000 * (1.10)^6$

$FV = 132867.075$

Hence, the future value is: RS 132867.075