Use the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity if $80 is invested semiannually for 20 yers at 5.5% compounded semiannually

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Answer:

$236.79

Step-by-step explanation:

To calculate the accumulated amount in the annuity, we'll use the formula:

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

Where:

- A is the accumulated amount,

- P is the periodic payment (the amount invested in each period),

- r is the annual interest rate (as a decimal),

- n is the number of compounding periods per year, and

- t is the total number of years.

Given:

- P = $80 (invested semiannually),

- r = 5.5% annually (or 0.055 as a decimal),

- n = 2 (compounded semiannually), and

- t = 20 years,

Let's plug in the values:

A = 80 * (1 + (0.055/2))^(2*20)

Now, let's calculate:

A ≈ $236.79

So, the accumulated amount in the annuity, after 20 years, with $80 invested semiannually at a 5.5% annual interest rate compounded semiannually, is approximately $236.79.

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