Question

Whats the future value of $1,500 after 5 years uf the appropriate interest rste is 6%, compoubded semiannually

Answer 1

Answer:

$2015.84

Step-by-step explanation:

To calculate the Future value (or accumulated value (AV)) for compounding interest you use the following formula

$PV(1+\frac{i}{n})^{i*n}$

Where PV is present value

i is the interest rate

n is the number of times compounding a period

p is the number of periods (years)

so we have $1500(1+\frac{.06}{2})^{5*2}$

If you put this in your calculator you get $2015.84

if you have any questions lmk