Question

How much interest is included in the future value of an ordinary simple annuity of $1,000 paid every six months at 7% compounded semi-annually if the term of the annuity is 7 years? The interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

$1,000(1 + .07/2)¹⁴ - $1,000 = $618.69