Dr Johnson invests $9,000 at the rate of 6% annual interest compounded semi annually for 4...

Question

Question

Dr Johnson invests $9,000 at the rate of 6% annual interest compounded semi annually for 4 years. what is the future value

Answer 1

Answer #1

Rate = 6% / 2 = 3%

Number of periods = 4 * 2 = 8

future value = Present value (1 + r)ⁿ

future value = 9000 (1 + 0.03)⁸

future value = 9000 * 1.26677

future value = $11,400.93

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Answer 2

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