+0  
 
0
137
1
avatar+21 

$1000 deposited every six months for 6 years at 5 1/2 % compounded semiannually.

 Mar 1, 2021
 #1
avatar+34316 
0

Payment made at end of periods    so  'ordinary annuity' calculation

FV =   PMT *  [ (1+r)n -1 ] / r         r = decimal interest for period (period is 6 months)   =  .055/2

                                                      n = number of periods  6 x 2 = 12

                                                      PMT = 1000

                                                       FV = how much it is worth at the end of 6 years

 

plug in the numbers to get  $ 13992.14

 Mar 1, 2021

19 Online Users