Answer:
Explanation:
Giving the following information:
For each of the following investments, we need to use the following formula:
FV= PV*(1+i)^n
(a) $5,500 in 10 years at 9% compounded semiannually.
i= 0.09/2= 0.045
n= 10*2= 20
FV= 5,500*1.045^20= $13,264.43
(b) $12,500 in 15 years at 8% compounded quarterly.
i= 0.08/4= 0.02
n= 15*4= 60
FV= 12,500*(1.02^60)= $41,012.88
(c) $13,600 in seven years at 6% compounded monthly.
i= 0.06/12= 0.005
n= 7*12= 84
FV= 13,600*(1.005^84)= $20,677.03
