Question

6) Suppose that $5000 is deposited into an account that earns 3.5%

interest compounded Semiannually. Let f(t) represent the value in dollars)
of the account at t years after depositing the $5000. Find the value of the
account at t = 4 years. (Round your answers to two decimal places.) {your
answer input will be decimal number only)

Answer 1

the future value is $5,750.01

Explanation:

The computation of the future value is shown below;

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $5,000 × (1 + 0.035 ÷ 12)^4 × 12

= $5,000 × (1 + 0.2916%)^48

= $5,750.01

Hence, the future value is $5,750.01