You deposit $7,500 into a savings plan at the end of every six months. The interest rate is 4% compounded semiannually. Find the value of the annuity after 4 years. Do not round until the final answer. Then, round to the nearest cent.

A
$210,912.00

B
$439,372.27

C
$55,757.13

D
$64,372.27

Question

You deposit $7,500 into a savings plan at the end of every six months. The interest rate is 4% compounded semiannually. Find the value of the annuity after 4 years. Do not round until the final answer. Then, round to the nearest cent.

A
$210,912.00

B
$439,372.27

C
$55,757.13

D
$64,372.27

nottim · Answer

While I don't remember completely, isn't this about annuities?

anonymous · Answer

Yes it is

nottim · Answer

So really, just plug this into the annuity formula.

anonymous · Answer

How many days is semi-annually?

nottim · Answer

Semi-annually is half a year. And half a year is 6 mths.

anonymous · Answer

so is R = 7500, r = 0.04, m =6/12 = 1/2, and t = 4?

anonymous · Answer

and then plug those numbers into the formula? R = [1+r/m]^mt - 1] over r/m?

anonymous · Answer

is that right?

nottim · Answer

I dunno. You're the actual student.