If you invest $750 every six months at 8% compounded semi-annually, how much would you accumulate at the end of 10 years?
A) $10,065
B) $10,193
C) $22,334
D) $21,731

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used here: FV = P * [(1 + r)^nt - 1] / r, where P is the payment amount ($750), r is the interest rate per period (0.08/2 = 0.04), n is the number of compounding periods per year (2), and t is the number of years (10). Plugging in these values gives the future value of the annuity, which is approximately $22,334.

If You Invest $750 Every Six Months at 8% Compounded