Question

A deposit of $2,960 is placed into a scholarship fund at the beginning of every six months for 13 years. The fund earns 7% annual interest, compounded biannually, and paid at the end of the six months. How much is in the account right after the last deposit? Select the correct answer below:

Answer 1

The value of the initial deposit is $2,960, so a1=2960. A total of 26 six-month deposits are made in the 13 years, so n=26. To find r, divide the annual interest rate by 2 to find the biannual interest rate and add 1 to represent the new biannual deposit.

r=1+0.072=1.035

Substitute a1=2960, n=26, and r=1.035 into the formula for the sum of the first n terms of a geometric series and simplify to find the value of the annuity.

S26=2960(1−1.03526)1−1.035≈122286.78

Therefore, the account has $122,286.78 after the last deposit is made.

Answer 2

where are the awnsers??