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Homework answers / question archive / You placed $8,714 in a savings account that earned an annual interest rate of 6

You placed $8,714 in a savings account that earned an annual interest rate of 6

Finance

You placed $8,714 in a savings account that earned an annual interest rate of 6.63 percent, compounded semiannually. How much will you have in this account at the end of 28 years? Assume that all interest received at the end of the period is reinvested the next period.

 

Round the answer to two decimal places

 

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 FV = PV * (1+r)^n

here,

FV ( Future value) = ?

PV (Present value) = $8714

r (Rate of interest per semi annual period) = 6.63%/2 = 0.03315

n ( semi annual periods) = 28 years * 2 = 56

 

Put the values in the formula;

FV = 8714 * (1+0.03315)^56

= $54,121.13

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