Question

Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually. How much will Coronado have in the account after 6 years if interest is reinvested?

Answer 1

Future Value= $156,901.16

Step-by-step explanation:

Giving the following information:

Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually.

To calculate the future value of this investment, we need to use the following formula:

FV=PV*(1+i)^n

PV= 98,000

i= 0.08/2= 0.04

n= 6*2= 12

FV= 98,000*(1.04^12)= $156,901.16