Pregunta
Amishi deposited
, at the end of each six months for 18 years in a
savings account. If the account paid
interest, compounded semiannually,
use the appropriate formula to find the future value of her account.
((Round your answer to the nearest cent.)
savings account. If the account paid
use the appropriate formula to find the future value of her account.
((Round your answer to the nearest cent.)
Ask by Ford Bright. in the United States
Mar 21,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
The future value of Amishi’s account is approximately $62,030.00.
Solución
- Regular deposit (payment),
. - Annual interest rate,
. - Since interest is compounded semiannually, the interest rate per period is
- Total time is 18 years and there are 2 periods per year, so the total number of periods is
The formula for the future value of an annuity is
Using a calculator,
Subtract 1:
Divide by
:
Multiply by
:
Respondido por UpStudy AI y revisado por un tutor profesional
Como
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Extra Insights
To find the future value of Amishi’s savings account, we will use the future value of an annuity formula:
Where:
-
= future value -
= payment amount per period ($800) -
= interest rate per period (8% annual compounded semiannually gives ) -
= number of compounding periods per year (2 for semiannual) -
= number of years (18)
Now, substituting the values:
Thus, the future value of Amishi’s account, rounded to the nearest cent, is $57,510.98.

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