Question

What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

	Future value	PV×(1+r)^n
	Here,
A	Interest rate per annum	8.4%
B	Number of years	17
C	Number of compoundings per per annum	2
A÷C	Interest rate per period ( r)	4.2%
B×C	Number of periods (n)	34
	Present value (PV)	$                                      3,100
	Future value	$     12,556.37
		3100×(1+4.2%)^34