Question

Anthony and Michelle Constantino just got married and received ​$39000 in cash gifts for their wedding. How much will they have on their​ twenty-fifth anniversary if they place half of this money in a​ fixed-rate investment earning 6 percent compounded​ annually? Would the future value be larger or smaller if the compounding period was 6​ months? How much more or less would they have earned with this shorter compounding​ period?

If they place half of this​ money, PV, in a fixed-rate investment earning 6 percent compounded​ annually, the amount they will​ have, FV, on their​ twenty-fifth anniversary is ​$____ . ​(Round to the nearest​ cent.)

Answer 1

83,691.48

Step-by-step explanation:

39000/2 = 19,500

19,500 x 1.06 (6%) 25 times