218k views
25 votes
To find the accumulated value of an investment of $15,000 for 7 years at an interest rate of 6.5% if the money is a

compounded semiannually, b. compounded quarterly, c. Compounded monthly. What is the accumulated value of the money is compounded semiannually?

User Moosa
by
7.7k points

1 Answer

7 votes

Answer:

A = $23,472.11

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 6.5/100

r = 0.065 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 15,000.00(1 + 0.065/2)(2)(7)

A = 15,000.00(1 + 0.0325)(14)

A = $23,472.11

User Ceiling Gecko
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories