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A small independent television station will need to replace one of its cameras. They deposit $9,400 in an account that earns 3.7% per year compounded semiannually. How much will they have toward the purchase
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A small independent television station will need to replace one of its cameras. They deposit $9,400 in an account that earns 3.7% per year compounded semiannually. How much will they have toward the purchase of the camera in 3 years?

User Kochizufan
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1 Answer

1 vote

Answer:

$10,492.86

Step-by-step explanation:

we are to determine the future value of the lump sum in 3 years

The formula for calculating future value:

FV = P (1 + r/m)^nm

FV = Future value

P = Present value

R = interest rate

N = number of years

m = number of compounding per year

$9,400 (1 + 0.037 / 2)^6 = $10,492.86

User Joshua Goldberg
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