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. CHOOSE ONE A $210,912.00 B $439,372.27 C $55,757.13 D $64,372.27

When I tried to solve I got 15600 which is way too small compared to the other answers... does anyone know how to solve? This is using the annuity formula

Answer 1

I thinks its D

Answer 2

How come?

Answer 3

http://openstudy.com/study#/updates/4feabd27e4b0bbec5cfa9742

Answer 4

ans D.. just use d same face value formula.. but take r as r/2, t as 2T sinces compounding done semiannualy

Answer 5

oh!! Ok thank you all!

Answer 6

Yep Yep np