What is the FUTURE VALUE of $1,000 invested for 8 years at 4% with SEMI-ANNUAL Compounding rounded to the nearest penny?
We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=$1000*(1+0.04/2)^(2*8)
=$1000*1.372785705
=$1372.79(Approx).
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