If you invest $750 every six months at 8% compounded semi-annually,how much would yuo accumulate at the end of

Question

10 years

Answer 1

you'd have $22,334 at the end of 10 years. If you keep on investing the $750 every 6 months, you'd have $71,269 at the end of 20 years.

Answer 2

Future Value of Annuity= PMT [(1+i)^n -1]/i ; where you have 4% every 6 months(8% annually); i =4%, n = 20 (twice a year for 10 years)

1) = 750[(1.04)^20 - 1]/i

2) = 750[2.19112 - 1]/.04

3) = 750[1.19112]/.04

4) = 893.34/.04

5) = $22,333.50

Jeff's answer is correct if you mean 8% every 6 months, or 16% per year. (question is somewhat vague on which annual rate)

Myself, through calculation, and Irish, by financial calculator, are using 8% annual rate and 4% every 6 months.

Answer 3

$34,321.47

FVoa = PMT [(1 + i)^n - 1) / i]

750[(1+.08)^20-1/.08)]

750[(4.66096)-1/.08)

750(3.66096/.08)