Question

Riley invested $1000 in saving Spohn, if the bonds earn 6.5% interest and the compounded semi annually how much total Riley earn in 15 years?

Answer 1

$2,610.37

Explanation:

The computation of the amount that should be earn in 15 years is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1,000 × (1 + 6.5% ÷ 2)^15 × 2

= $1,000 × (1 + 3.25%)^30

= $1,000 × 2.610368439

= $2,610.37