Answer to Question #137588 in Financial Math for sarah

Question

Sandra deposits $3000 at the beginning of each semiannual period for 11 years at 8%
interest compounded semiannually. Find the amount she will have on deposit. Round to
the nearest cent

Answer 1

$A=p[(1-i)^n-1]/i$

Where

A= is the final amount

p= the periodic deposit (3000)

i= is the periodic interest 8/(2x100) = 0.04

n= the number of periods = 11x2=22

$A=3000[(1+0.04)$²² $-1]/0.04$

$A=75000[1.04$²²$-1]/0.04$

$A=102743.90$

Final amount is = $ 102743.90