Calculate the Future Value for a series of $5,000 payments, made at the end of every 6 months for 10 years. Assume that money is worth 4% compounded annually.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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Calculate the Future Value for a series of $5,000 payments,
made at the end of every 6 months for 10 years.
Assume that money is worth 4% compounded annually.
n =
payments →
1
0.5
0.04
i
İ2 = (1+ i )(1/2)– 1
m
(1 + İ2 ) n -1
FV = 5,000
i2
Round your final answer
to two decimal places.
Transcribed Image Text:Calculate the Future Value for a series of $5,000 payments, made at the end of every 6 months for 10 years. Assume that money is worth 4% compounded annually. n = payments → 1 0.5 0.04 i İ2 = (1+ i )(1/2)– 1 m (1 + İ2 ) n -1 FV = 5,000 i2 Round your final answer to two decimal places.
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