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An initial investment of​ $14,000 is appreciated for 66 years in an account that earns 66​% ​interest, compounded semiannually. Find the amount of money in the account at the end of the period.

Guest Aug 25, 2017
 #1
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FV = PV x [1 + R]^N

FV = 14,000 x [1 + 0.06/2]^(6*2)

FV = 14,000 x [1.03]^12

FV = 14,000 x     1.425760887.......

FV =$19,960.65

Guest Aug 25, 2017
 #2
avatar+92805 
+1

Good but you have compounded at 6% for 6 years

not at 66% for 66 years which is what the question asks for :)

I wish I could get interest like that on my savings!!

 

14000(1+0.33)^(66*2) = 312280339853234696132.5953902073585167838324118204281050907580348068612312312280339853234696132.5953902073585167838324118204281050907580348068612312 = 3.1228033985323469613259539020735851678383241182042810509e20

 

approx   3.1228*10^20 dollars

That is more money than you or I could even imagine. 

Melody  Aug 26, 2017

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