Question

Chris invested $50,000 today in a fund that earns 8% compounded semiannually. To what amount will the investment grow in 3 years

Answer 1

$63,265.95

Step-by-step explanation:

The computation of the amount invested growing in 3 years is shown below:

Accumulated Sum = Amount Invested * (1 + Semiannual rate of interest )^Semiannual time Period

= $50,000 * 1.04^6

= $50,000 * 1.265319

= $63,265.95

Hence, the amount invested growing in 3 years is $63,265.95

We simply applied the above formula