You decide to deposit $3,000 at a local bank for three years at a 5% rate of interest compounded semiannually. The future value of your investment is approximately equal to ________. (Use the formula approach and round your final answer to the nearest dollar.)
A) $3,473
B) $3,482
C) $3,479
D) $3,450

Question

Quizplus · Accepted Answer

The future value is calculated using the formula FV = P(1 + r/n)^(nt), where P = $3,000, r = 0.05, n = 2, and t = 3. Plugging in these values gives FV ≈ $3,479.

You Decide to Deposit $3,000 at a Local Bank for Three