Question

I need help solving this question

Answer 1

`~~~~~~~~~~~~\stackrel{\textit{payments at the end of the period}}{\textit{Future Value of an ordinary annuity}} \\\\ A=pmt\left[ \cfrac{\left( 1+(r)/(n) \right)^(nt)-1}{(r)/(n)} \right]`

`~~~~~~ \begin{cases} A=\textit{accumulated amount}\\ pmt=\textit{periodic payments}\dotfill &650\\ r=rate\to 1.10\%\to (1.10)/(100)\dotfill &0.011\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semiannually, thus two} \end{array}\dotfill &2\\ t=years\dotfill &3 \end{cases}`

`A=650 \left[ \cfrac{\left( 1+(0.011)/(2) \right)^(2 \cdot 3)-1}{(0.011)/(2)} \right]\implies A\approx 650\left[ \cfrac{0.03346}{0.0055} \right]\implies A \approx 3954.02`