Question

On July 14 joseph invested $12000 in a fund that was growing at 5% compound semi annually

Calculate the future value of the fund on march 15 2014

Answer 1

$12,300

Step-by-step explanation:

I will assume that Joseph invested in the fund on July 14, 2013.

We have to calculate the future value to March 15, 2014 (8 months later).

since the interest is compounded semi annually, it will earn interest on January 14, 2014.

Future value = $12,000 x (1 + 2.5%) = $12,300

since the fund is going to earn interests again on July 14, 2014, the value on march 14 is the same = $12,300