Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

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:

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.