Find the future value of a $150,000 Certificate of Deposit that pays compounded interest every six months

Question:

Find the of a $150,000 Certificate of Deposit that pays compounded interest every six months at the rate of 4% per year. The CD has a term of 5 years.
a) Calculate the FV using the or Compound Amount of $1.00 table in your textbook. 10 2% =1.21899
Number of periods: 10
Interest rate per period: 2%
The corresponding value: 1.21899
Multiply the principal: 1.21899 x 150,000 = 182,848.50
The of the loan is: 182,848.50; Rounded: 182,849
b) Calculate the FV using the formula: FV = P(1 + R)N
Principal: 150,000
Rate: 4%/2=2%
Number of periods: 2*5= 10 150,000 ( 1 + .002)^ 10 = 153027.145 or 153027.15 Rounded
c) How much interest was earned on the investment?
153,027.15 - 150,000= 3,027.15
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...