the accumulated value of an investment of $15,00 for 7 years at rate of 4.5% compounded semiannually what will that be?
To calculate the future value of an investment, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the accumulated value or future value
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
Given:
P = $15,000
r = 4.5% = 0.045 (as a decimal)
n = 2 (compounded semiannually)
t = 7 years
Now, let's plug in these values into the formula and calculate the accumulated value:
A = 15000(1 + 0.045/2)^(2*7)
A = 15000(1 + 0.0225)^(14)
A = 15000(1.0225)^(14)
A ≈ 15000 * 1.369972
A ≈ $20,549.58
Therefore, the accumulated value of an investment of $15,000 for 7 years at a rate of 4.5% compounded semiannually will be approximately $20,549.58.