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What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the beginning of every six months, for 7 years, if the interest rate is 3.50% compounded semi-annually?

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Final answer:

The accumulated value of periodic deposits of $6,000 made into an investment fund at the beginning of every six months, for 7 years, with an interest rate of 3.50% compounded semi-annually would be $92,353.09.

Step-by-step explanation:

To find the accumulated value of periodic deposits, we can use the formula for the future value of an ordinary annuity:

FV = P * ((1 + r)^n - 1) / r

Where FV is the future value, P is the periodic deposit, r is the interest rate per period, and n is the number of periods.

In this question, the periodic deposit is $6,000, the interest rate is 3.50% compounded semi-annually (which means the interest rate per period is 3.50% / 2 = 1.75%), and the number of periods is 7 years * 2 = 14.

Plugging in the values into the formula:

FV = 6000 * ((1 + 0.0175)^14 - 1) / 0.0175 = $92,353.09

Therefore, the accumulated value of the periodic deposits after 7 years would be $92,353.09.

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