Register
lois invests 650 every 6 months at 4.6%/a compounded semi-annually for 25 years. How much interest will she earn after the 25th year
19.9k views
5 votes
lois invests 650 every 6 months at 4.6%/a compounded semi-annually for 25 years. How much interest will she earn after the 25th year

User Swier
by
6.2k points

1 Answer

3 votes
Future value annuity is given by:
FV=P[((1+r)^n-1)/r]
From the information:
P=650
r=0.046/2=0.023
n=25*2=50

Plugging our values in the formula we get:
FV=650[((1+0.023)^50-1)/0.023]
FV=59837.365
User Niveathika
by
6.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.6m questions

8.7m answers

Other Questions

What is 0.12 expressed as a fraction in simplest form
arlos has $690,000 he wants to save. If the FDIC insurance limit per depositor, per bank, is $250,000, which of these ways of distributing his money between three banks will guarantee that all of his money
Solve using square root or factoring method plz help!!!!.....must click on pic to see the whole problem
What is the initial value and what does it represent? $4, the cost per item $4, the cost of the catalog $6, the cost per item $6, the cost of the catalog?
What is distributive property ?
Link Copied!