Let F--------------------> future value P--------------------> present value r --------------------> interest rate per year m ------------------ > number of compounding periods per year t --------------------> time in years. we know that P=$1,600 <span>t=17 years m=2 r=10%------> 0.10
F=P(1+i)</span><span>^n </span><span>where i=r/m ---------> 0.10/2=0.05 and n=m*t------------> 2*17=34
</span>F=1600*(1+0.05)^34=8405.36 <span> the answer is $</span>8405.36<span>
