Use the compound interest formula to compute the future value of the investment.
-$800 at 6.3% compounded semiannually for 12 years

Question

Quizplus · Accepted Answer

The compound interest formula is $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 800 $, $ r = 0.063 $, $ n = 2 $, and $ t = 12 $. Plugging in these values, $ A = 800 \left(1 + \frac{0.063}{2}\right)^{2 \times 12} \approx 1684.04 $.

Use the Compound Interest Formula to Compute the Future Value