What is the future value in four-and-a-half years of $5000 invested today at 9.50% compounded semi-annually?
A) $6161.17
B) $7522.00
C) $7592.00
D) $9875.00

Question

Quizplus · Accepted Answer

We need to use the formula: 
FV = PV * (1 + r/n)^(nt)
where:
PV = $5000 (present value)
r = 9.50% (annual interest rate)
n = 2 (compounded semi-annually)
t = 4.5 years

Plugging in the values, we get:
FV = 5000 * (1 + 0.095/2)^(2*4.5)
FV = 5000 * (1.0475)^9
FV = $7592.00

Therefore, the best choice is C.

What Is the Future Value in Four-And-A-Half Years of $5000