Question
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
Upstudy AI Solution
Tutor-Verified Answer
Answer
The future value of Amishi’s account is approximately $62,030.00.
Solution

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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.