$$\begin{array}{l}
\text { Find the maturity value. }\
\begin{array} { c | c | c | c }
\text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \
\hline \$ 150 & 2.5 \% & \text { Semiannually } & 6 \text { years }
\end{array}
\end{array}$$
A) $274.23
B) $224.61
C) $174.11
D) $153.86

Question

$$\begin{array}{l}
\text { Find the maturity value. }\
\begin{array} { c | c | c | c } 
\text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \
\hline \$ 150 & 2.5 \% & \text { Semiannually } & 6 \text { years }
\end{array}
\end{array}$$
A) $274.23
B) $224.61
C) $174.11
D) $153.86

Quizplus · Accepted Answer

The maturity value is calculated using the compound interest formula: $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 150 $, $ r = 0.025 $, $ n = 2 $, and $ t = 6 $. Plugging in these values gives $ A = 150 \left(1 + \frac{0.025}{2}\right)^{2 \times 6} \approx 174.11 $.

A) $27423 B) $224

A) $27423
B) $224