Question

Margaret, when she turned 25, made an investment of $15,290 at an interest rate of 6.1% compounded semi-annually (twice per year). Now that she is 50 years old, how much is the investment worth now? Round your answer to the nearest dollar.

Answer 1

$68,676.36

Step-by-step explanation:

The computation of the investment worth now is shown below:

Given that

Investment amount = $15,290

Rate of interest = 6.1%

Number of years old = 50

So half yearly is 3.05% or 0.0305

Now the investment worth now is

= Investment amount × (1 + interest rate)^time period

= $15,290 × (1 + 0.0305)^50

= $15,290 × 4.491586892

= $68,676.36