Answer to Question #155462 in Financial Math for tadz

Question

What is the maturity value of $5000 invested at 6% compounded semi-annually for seven years.

Answer 1

$FV=PV(1+I){^n}$

$i=\frac{6\%}{2}=3\%$

$n=7\times2=14$

$5000(1+0.03)^{14}$

$5000\times2$

=$10000