Question

Yolanda deposited $1,200 at the end of each six months for 2 years in a savings account. If the account paid 4% interest, compounded semiannually, use Table 12
the future value of her account. (Round your answer to the nearest cent.)

Answer 1

Answer:

the future value of Yolanda's account after 2 years is $1,403.88.

Step-by-step explanation:

Deposit amount (PMT): $1,200

Number of periods (n): 2 years * 2 compounding periods per year = 4 compounding periods

Interest rate per period (i): 4% per year / 2 compounding periods per year = 2% per compounding period

From Table 12, the future value factor for 4 periods and 2% interest rate per period is approximately 1.1699.

Future value = PMT * Future Value Factor

Future value = $1,200 * 1.1699 ≈ $1,403.88

Therefore, the future value of Yolanda's account after 2 years is approximately $1,403.88.