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Kelly plans to put her graduation money into an account and leave it there for 4 years while she goes to college. She receives $750 in graduation money that she puts it into an account that earns 4.25% interest compounded semi-annually. How much will be in Kelly’s account at the end of four years? (Be sure to round your final answer to two decimal places.)

 Nov 11, 2016
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FV = PV [1 + R]^N

FV =750 [1 + 0.0425/2]^(4*2)

FV =750 [1 + 0.02125]^8

FV =750 x 1.02125^8

FV =750 x 1.1831956

FV =$887.40 Balance in Kelly's account after 4 years @ 4.25% comp. SA.

 Nov 11, 2016

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