Solve the problem. Round to the nearest cent.
-Sandra deposits $3000 in an ordinary annuity at the end of each semiannual period at 3% interest Compounded semiannually. Find the amount she will have on deposit after 12 years.
A) $85,900.56
B) $78,675.43
C) $82,900.56
D) $43,853.37

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^nt - 1] / r, where P is the payment amount, r is the interest rate per period, n is the number of periods per year, and t is the number of years. Here, P = $3000, r = 0.03/2 = 0.015, n = 2, and t = 12. Plugging these values into the formula gives the future value closest to $85,900.56.

Solve the Problem. Round to the Nearest Cent