Final answer:
To calculate the future value of Vicki's $26,800 investment at an 11.75% annual interest rate, compounded biannually over 14 years, we use the compound interest formula. Plugging in the values, we can determine how much money Vicki will have in her account after this period.
Step-by-step explanation:
The question pertains to finding the future value of an investment with compound interest. Vicki invests $26,800 in an account with an interest rate of 11.75% compounded biannually. To calculate the future value of this investment after 14 years, we use the compound interest formula:
FV = P(1 + r/n)^(nt)
Where:
FV is the future value,
P is the principal amount ($26,800),
r is the annual interest rate (11.75% or 0.1175),
n is the number of times interest is compounded per year (2 for biannual),
t is the time in years (14 years).
By plugging these values into the formula, we get:
FV = 26800(1 + 0.1175/2)^(2*14)
The calculation gives us Vicki's future value in her account after 14 years.