Question

15900(1+.04/2)^(2x12)
Which of these future values could he have been calculating?
A. The future value of $15,900 invested at 2% interest compounded
quarterly for 12 years.
B. The future value of $15,900 invested at 4% interest compounded
semiannually for 12 years.
O
C. The future value of $15,900 invested at 4% interest compounded
annually for 2 years.
O
D. The future value of $15,900 invested at 2% interest compounded
annually for 4 years.

Answer 1

Answer:

B

Step-by-step explanation

.04 is the intrest compounded thats why you add a one to it, and simiannually is the 2x12

Answer 2

The future value of $15,900 invested at 4% interest compounded

semiannually for 12 years.

What is a compound interest?

Compound interest is a type of interest that is compounded after time period it is said to be compounded. After that particular period, the interest is calculated and then added with the principle. For the next duration, the interest is calculated on the sum.

We know, the amount of money after n years when the interest is compound semiannually,

S = P[1 + ($\frac{r}{2}$)ⁿˣ².

Here, the given equation is 15900(1 + $\frac{0.04}{2}$)²ˣ¹².

Therefore, P = Principle = 15900, r = rate of interest = 4% compounded semiannually, n = time period = 12 years.

Hence, the future value of $15,900 invested at 4% interest compounded

semiannually for 12 years.

Option(B) is correct answer.

Learn more about compound interest here: brainly.com/question/25857212

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