Question

What is the future value of $3,400 in 18 years assuming an interest rate of 8.7 percent compounded semiannually?

Answer 1

$15,747.34.

Step-by-step explanation:

The Future Value of the Investment, FV can be determined using a financial calculator as follows :

Pv = - $3,400

n = 18 × 2 = 36

p/yr = 2

r = 8.70 %

Pmt = $0

Fv = ?

Using a Financial calculator, the Future Value of the Investment, FV is $15,747.34.