Final answer:
To find the future value of $538 deposited today into an account paying 8.0% compounded semi-annually for two years, the formula FV = PV * (1 + (r/n))^(n*t) can be used. By substituting the given values into the formula, the future value is approximately $629.59.
Step-by-step explanation:
To find the future value of $538 deposited today into an account paying 8.0% compounded semi-annually for two years, we can use the formula:
FV = PV * (1 + (r/n))^(n*t)
Where FV is the future value, PV is the present value, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
Substituting the given values, we have:
FV = 538 * (1 + (0.08/2))^(2*2)
FV = 538 * (1 + 0.04)^4
FV = 538 * (1.04)^4
FV ≈ 538 * 1.16985856 ≈ $629.59
Therefore, the future value of $538 deposited today into an account paying 8.0% compounded semi-annually for two years is approximately $629.59.