An investment with an initial deposit of $11,505 is growing at an interest rate of 6

1.Computation of Accumulated Amount at the End of 2 years using FV Function in Excel:

=fv(rate,nper,pmt,-pv)

Here,

FV = Future Value or Accumulated Amount = ?

Rate = 6.21%/4 = 1.5525% compounded quarterly

Nper = 2 years*4 quarters = 8 quarters

PMT = 0

PV = $11,505

Substituting the values in formula:

=fv(1.5525%,8,0,-11505)

FV or Future Value = $13,014.02

So, Accumulated Amount at the End of 2 years is $13,014.02

2.Computation of Accumulated Amount at the End of 9 years using FV Function in Excel:

=fv(rate,nper,pmt,-pv)

Here,

FV = Future Value or Accumulated Amount = ?

Rate = 6.67%/2 = 3.335% compounded Semiannual

Nper = (9 - 2) years*2 Semiannual Periods = 14 Semiannual Periods

PMT = 0

PV = $13,014.02

Substituting the values in formula:

=fv(3.335%,14,0,-13014.02)

FV or Future Value = $20,600.40

So, Accumulated Amount at the End of 9 years is $20,600.40

3.Computation of Total Interest accumulated during the entire 9 years of the investment:

Total Interest = Accumulated Amount at the End of 9 years - Initial Deposit

= $20,600.40 - $11,505

Total Interest = $9,095.41