An investor deposits $500.00 in a simple ordinary annuity at the end of each six- month...
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An investor deposits $500.00 in a simple ordinary annuity at the end of each six- month payment period. This annuity earns 6% per year, compounded semiannually a) Find the future value if payments are made for 6 years. (Round your answer to the nearest cent.) b) Find the future value if payments are made for 20 years. (Round your answer to the nearest cent.) c) How much interest is earned over the 20-year term in part (b)? (Round your answer to the nearest cent.) An investor deposits $500.00 in a simple ordinary annuity at the end of each six- month payment period. This annuity earns 6% per year, compounded semiannually a) Find the future value if payments are made for 6 years. (Round your answer to the nearest cent.) b) Find the future value if payments are made for 20 years. (Round your answer to the nearest cent.) c) How much interest is earned over the 20-year term in part (b)? (Round your answer to the nearest cent.)
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To solve this problem we can use the formula for the future value of an ordinary annuity FV ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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