Accounting: I am STUMPED by this interest calculation. HELP!?

Question

What is the future value of equal semi-annual payments of $9,000 at 14% compounded semi-annually for 3 years:

a. $91,039

b. $54,380

c. $40,001

d. $64,380

Answer 1

Just refer to the attached Future Value of an Ordinary Annuity of $1 table at the link. Look under 7% (half of 14% cos it's semiannual) and 6 periods (3 yrs x 2 periods in each yr) and you'll find the multiplier is 7.1533.

$9,000 x 7.1533 = $64,380 - answer d.