helpp.
Miles wants to purchase a home in six years. He will contribute $5000 each year to a savings account with 1.85% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?

$31,574.30

$31,866.37

$63,148.61

$63,732.73
@NaCl

Question

helpp.
Miles wants to purchase a home in six years. He will contribute $5000 each year to a savings account with 1.85% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?
 
$31,574.30 

$31,866.37 

$63,148.61 

$63,732.73 
@NaCl

mathstudent55 · Answer

Are Maurice and Miles the same person?

mathstudent55 · Answer

You need the compound interest formula.

anonymous · Answer

i have no idea lol i just noticed that.. can you help me

mathstudent55 · Answer

Once again, you need the compound interest formula. Do you know it?

anonymous · Answer

no i dont.

anonymous · Answer

@NaCl

mathstudent55 · Answer

$F = A(1 + i) \left(    \dfrac{(1 +  i)^n - 1}{i}  \right) $
where 
F = future value
A = periodic payment
i = interest rate per period written as decimal
n = number of periods

anonymous · Answer

i cant solve it im not getting an answer choice

mathstudent55 · Answer

$F = A(1 + i) \left(   \dfrac{(1 +  i)^n - 1}{i}   \right)$

$F = $2500(1 + \dfrac{0.0185}{2} ) \left(  \dfrac{(1 +  \frac{0.0185}{2} )^{12} - 1}{\frac{0.0185}{2}}      \right) $

$F = $31,866.37 $