investment question

Question

Calculate the amount that will be accumulated after 20 years if $1600 is invested at the beginning of every six months at 9% compounded semiannually. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Answer 1

Use the formula A = P(1+r/n)^nt. Where t is the number of years (20), P is the principal of 1600, r is the interest rate of 0.09, and n is the number of times a year the compounding occurs (2).

 

So calculate A =1600(1+0.09/2)^2*20.