Question

____ is the amount of a $3,000.00 annuity due at 12% compounded semiannually for 3 years.
-334,321.00
-43,068.93
-22,180.50
-41,814.50
Please explain how to get the answer

Answer 1

The formula for "compound amount" is important to know. If A=compound amount, P=Principal, r=annual interest rate as a decimal fraction, n=number of compounding periods per year, and t=number of years, then\[A=P(1+\frac{ r }{ n })^{nt}\]

Answer 2

See what you can do with this formula. Please, share your work.