What will be the amount accumulated by each of the given present investment? (a) (a) $5,500 in 10 years at 9% compounded semiannually. (b) (b) $12,500 in 15 years at 8% compounded quarterly. (c) (c) $13,600 in seven years at 6% compounded monthly.

Explanation:

Giving the following information:

For each of the following investments, we need to use the following formula:

FV= PV*(1+i)^n

(a) $5,500 in 10 years at 9% compounded semiannually.

i= 0.09/2= 0.045

n= 10*2= 20

FV= 5,500*1.045^20= $13,264.43

(b) $12,500 in 15 years at 8% compounded quarterly.

i= 0.08/4= 0.02

n= 15*4= 60

FV= 12,500*(1.02^60)= $41,012.88

(c) $13,600 in seven years at 6% compounded monthly.

i= 0.06/12= 0.005

n= 7*12= 84

FV= 13,600*(1.005^84)= $20,677.03

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