Question

Find the accumulated value of an investment of $ 20 comma 000$20,000 for 77 years at an interest rate of 7 %7% if the money is a. compounded​ semiannually

Answer 1

To find the accumulated value of an investment compounded semiannually, we can use the formula for compound interest:

A = P( 1 + r/n)^nt

Now, calculate 1.035^154 and multiply it by 200,000.

a. semiannually is approximately $29,017.40

b. quarterly is approximately $29,204.60

c. monthly is approximately $29,249.80

d. continuously is approximately $29,394.80