Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The annuity that should be worth after 6 years is $63,900.
Given that,
- The present value is $4,500.
- The semi-annual time period should be = 6 × 2 = 12.
- The rate of interest on semi-annual basis should be = 6% ÷ 2 = 3%
Now the following formula should be used:
[tex]Amount = Present\ value \times \frac{(1+ rate)^{(n)} - 1} {rate}\\\\= \$4,500 \times \frac{(1+0.03)^{12} - 1}{0.03}\\\\= \$4,500 \times \frac{0.4257}{0.03}\\\\= \$4,500 \times 14.1920\\\\= \$63,864\\\\= \$63,900[/tex]
Therefore we can conclude that the annuity that should be worth after 6 years is $63,900.
Learn more about the annuity here: brainly.com/question/17096402
Answer: 63900
Step-by-step explanation: Use the savings annuity formula
PN=d((1+r/k)N k−1)r/k
to calculate the value of P6. The question states that r=0.06, d=$4,500, k=2 compounding periods per year, and N=6 years. Substitute these values into the formula results in
P6=$4,500 ((1+0.06/2)6⋅2−1)/(0.06/2).
Simplifying, we have P6=$4,500 ((1.03)12−1)/(0.03). Therefore P6=$63,864.13. Our final answer is 63900.
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
