Question

If you deposit 4,300 into an account with an semi annual interest rate of 11% how much will you have after 1year

Answer 1

FV= $4,786.01

Explanation:

Giving the following information:

Initial deposit (FV)= $4,300

Number of periods (n)= 2 semesters

First, we need to calculate the semi-annual interest rate:

Semi-annual interest rate= 0.11/2= 0.055

Now, to determine the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 4,300*(1.055^2)

FV= $4,786.01