What's the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually?
A) $1,819
B) $1,915
C) $2,016
D) $2,117
E) $2,223

Question

Quizplus · Accepted Answer

The future value is calculated using the formula for compound interest: FV = P(1 + r/n)^(nt). Here, P = $1,500, r = 0.06, n = 2 (since it's compounded semiannually), and t = 5. Plugging in these values, FV = 1500(1 + 0.06/2)^(2*5) = 1500(1.03)^10 ≈ $2,016.

What's the Future Value of $1,500 After 5 Years If