The amount of interest on an ordinary annuity of $11,600.00 for 5 years at 8% compounded semiannually is:
a. $23,269.60
b. $116,000.00
c. $23,296.60
d. $139,269.60
Your question is stated wrongly!. The only choice that makes any sense is "d". But that is the FV of 5 payments of $11,600 @ 8% comp.semi-annually.
CORRECTION:
Your question is stated wrongly!. The only choice that makes any sense is "d". But that is the FV of 10 payments of $11,600 @ 8% comp.semi-annually, which comes to:$139,270.84 - [$11,600 X 10]=$23,270.84, which is total interest earned. So, "a" is the closest answer.
