Question

You have deposited $1,200 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years

Answer 1

$2,629.35

Step-by-step explanation:

The amount in future for the dollar invested today is known as the Future Value (FV)

We can simply calculate the Future Value using a Financial Calculator as follows :

PV = - $1,200

PMT = $0

P/YR = 2

I = 8 %

N = 10 x 2 = 20

FV = ??

Therefore,

The Future Value (FV) will be $2,629.35

You will have $2,629.35 in this account at the end of 10 years.