Question

find the future value compound interest on $6000 at 5% compounded semiannually fir two years. use future value compound amount of $1.00 table or the future value and compound interest formula.

and interest on $6,000 at 5% compounded semiannually for two years. Use the Future Val Data Table Table Future Value or Compound Amount of $1.00 Rate per period Periods 1% 1.5% 2% 2.5% 3% 4% 5% 6% 8% 1 1.01000 1.01500 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.08000 2 1.02010 1.03023 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.16640 3 1.03030 1.04568 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 1.25971 4 1.04060 1.06136 1.08243 1.10381 1.12551 1.16986 1.21551 1.26248 1.36049 5 1.05101 1.07728 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 1.46933 Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula FV = $1(1 + R)N Print Done Clearah 9 (01) o . © e o

Answer 1

Answer:-

Computing future value and compound interest.

FV = PV(1+r)^n

FV = 6000(1+0.25)^4

= 6000×1.1038

= 6623

Compound interest

P

= P(1 + r/n)^nt

= 6000(1+0.05/2)^2×2

= 6000×1.1038

= 6622.8