Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.
-$\mathrm{PMT}=\$ 900,8 \%$ interest compounded semiannually for 13 years
A) $\$ 37,481.32$
B) $\$ 39,880.57$
C) $\$ 62,380.57$
D) $\$ 28,329.41$

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula $ FV = PMT \times \frac{(1 + r)^n - 1}{r} $. Here, the interest rate per period $ r $ is $ 4\% $ (since 8% annually compounded semiannually is 4% per period), and the number of periods $ n $ is $ 26 $ (13 years with 2 periods per year). Plugging in the values, the future value is approximately \$39,880.57.

Find the Future Value of the Ordinary Annuity PMT=$900,8%\mathrm{PMT}=\$ 900,8 \%PMT=$900,8%

Find the Future Value of the Ordinary Annuity $\mathrm{PMT}=\$ 900,8 \%$