The future value of $100 compounded semiannually for 3 years at 12% equals $140.49.
Calculation: $100 x1.4185 = $141.85.

Question

Quizplus · Accepted Answer

To find the future value of $100 compounded semiannually for 3 years at 12%, we can use the formula:

FV = PV x (1 + r/n)^(nt)

Where PV is the present value, r is the annual interest rate, n is the number of times the interest is compounded in a year, t is the number of years.

In this case, we have:

PV = $100
r = 12% = 0.12
n = 2 (semiannually)
t = 3

So, FV = $100 x (1 + 0.12/2)^(2x3) = $141.85

Therefore, the statement "The future value of $100 compounded semiannually for 3 years at 12% equals $140.49" is false.

The Future Value of $100 Compounded Semiannually for 3 Years