7,500.00 is invested at an APR of 4.9% compounded semi annually (twice per year). Write a numerical expression that would compute the value of the investment after 13 years. g

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9 January, 02:15

7,500.00 is invested at an APR of 4.9% compounded semi annually (twice per year). Write a numerical expression that would compute the value of the investment after 13 years. g

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Hannah Abbott · Answer 1

13 years would be a time in the future hence you use future value formula.

Future value formula is FV = PV * (1+r) ^n

r = interest rate; in this case it is the semiannual rate = 0.049/2 = 0.0245 as a decimal.

pv = principal amount invested = 7,500.00

Duration of investment; in this case, number of semi-annual periods = 13*2 = 26

The expression would be; 7500 (1.0245) ^26