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What is the future value of $300 in 19 years assuming aninterest rate of 10...

What is the future value of $300 in 19 years assuming an interest rate of 10 percent compounded semiannually?

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Expert Solution

Information provided:

Present value= $300   

Interest rate= 10%/2 = 5% per  semi-annual period

Time= 19 year*2= 38 semi-annual periods

Enter the below in a financial calculator to compute the future value.

PV= -300

I/Y= 5

N= 38

Press the CPT key and FV to compute the future value.

The value obtained is 1,915.64.

Therefore, the future value is $1,915.64.

jeff jeffy answered 2 years ago
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