Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Suppose a friend tells you about an annuity that pays 6% annual interest, compounded semi-annually. You invest in the
annuity contributing $10,000 semiannually for 6 years. What is the value of the annuity after your last investment?

Sagot :

Parrain

The value of the annuity after the last investment is $141,920.

You are looking for the future value of an annuity.

Future value of annuity = Annuity x Future value interest factor of annuity

Because this annuity is compounded semi-annually, you need to convert the figures to a semi-annual basis:

Number of periods = 6 years x 2 = 12 semi annual periods

Interest = 6% / 2 = 3% per semi annum

Future value of annuity = Annuity x Future value interest factor of annuity 3%, 12 periods

= 10,000 x 14.1920

= $141,920

Find out more at https://brainly.com/question/14761171.

View image Parrain

Answer: 141900

Step-by-step explanation:

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.