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almond37 [142]
2 years ago
6

The future value of $200 received today and deposited at 8 percent compounded semiannually for three years is ________. $380 $15

8 $253 $252

Business
2 answers:
jolli1 [7]2 years ago
6 0

Answer:

$253

Explanation:

In order to solve this you just have to use the formula to calculate the future insterests:

A=P(1+\frac{r}{n})^{nt}

A= Amount or future value

P=Principal

R=Interest rate in decimals

N= Number of compounds by unit, or year

T= Time in years

So we know that the interest is 8% that is 0.08 in decimal, and since it is compounded semiannually that´s two times a year for three years, we just insert that into the formula:

A=P(1+\frac{r}{n})^{nt}\\A=200(1+\frac{.08}{2})^{2*3}\\ A=200(1.04)^6\\a=200(1.2653)\\A=253.06

So the future value of the $200 account will be $253.06 after three years.

Goryan [66]2 years ago
5 0
The correct answer is $253

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