Determine the final amount or future value for an investment of $6000 at a 4% annualized interest rate for 3 years, compounded semi-annually.
Is this the right formula for this problem? : 6000(1+0.07/4)^32 = $10,453,28
I am not sure if this is the right equation for this problem, but I just want to know if I am right since it is looking for a future value. Thanks!!
Is this the right formula for this problem? : 6000(1+0.07/4)^32 = $10,453,28
I am not sure if this is the right equation for this problem, but I just want to know if I am right since it is looking for a future value. Thanks!!
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Right formula, wrong inputs. 6000 (1 + .04/2)^6 = $6,756.97
Semiannually means twice a year so periods per year = 2 and total periods is 6 (2 for 3 years)
Semiannually means twice a year so periods per year = 2 and total periods is 6 (2 for 3 years)
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I don't know where you're getting 0.07 from.
I think it's:
6,000 (1 + 0.04/2)^6
6,000(1.02)^6 = $6,756.94
If it's semi-annually, I think it's twice a year. So that would make 6 interest periods.
If semi-annually means 4 times a year, then it's 6,000(1.01)^12
I hope this information was very helpful.
I think it's:
6,000 (1 + 0.04/2)^6
6,000(1.02)^6 = $6,756.94
If it's semi-annually, I think it's twice a year. So that would make 6 interest periods.
If semi-annually means 4 times a year, then it's 6,000(1.01)^12
I hope this information was very helpful.
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Final amount = 6000(1 + (0.04)/2)^6
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6000(1.02)^6