Question

What is the future value of a R 75 000 deposit made every 6 months for 3 years using an annual rate of 10% compounded semi-annually?​

Answer 1

The future value is: RS 132867.075

Explanation:

Given

`PV = 75000` --- present value

`r = 10\%` --- annual rate

`n = 6` --- number of times compounded (3 years/ 6 months)

Required

The future value

This is calculated as:

`FV =PV * (1 + r)^n`

`FV = 75000 * (1 + 10\%)^6`

`FV = 75000 * (1 + 0.10)^6`

`FV = 75000 * (1.10)^6`

`FV = 132867.075`

Hence, the future value is: RS 132867.075