What's the future value of $3,300 after 5 years if the appropriate interest rate is 6%,compounded semiannually?
A) $4,080.13
B) $4,434.92
C) $3,547.94
D) $4,701.02
E) $3,370.54

Question

Quizplus · Accepted Answer

The formula for future value with semiannual compounding is FV = P(1 + r/2)^2n, where P is the present value, r is the interest rate (as a decimal), and n is the number of semiannual periods. Plugging in the values, we get FV = 3300(1 + 0.06/2)^(2*5) = $4,434.92, rounded to the nearest cent. Therefore, the best choice is B.

What's the Future Value of $3,300 After 5 Years If