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One thousand dollars is deposited into an ordinary annuity after each 6 month period for 2 years. The account pays 4 percent interest compounded semiannually.what is the future value of the account in 2 years ??

Respuesta :

sqdancefan

Answer:

  $4121.61

Step-by-step explanation:

Use the formula for the balance of an ordinary annuity.

  A = P((1 +r/n)^(nt) -1)/(r/n)

  A = $1000((1 +.04/2)^(2·2) -1)/(.04/2) ≈ $4121.61

The future value of the account is $4121.61.

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