$500 in 15 years at 8% annual interest compounded semiannually.
P = $500
Time = 30 years
Rate = 4%
$500(1+.08/2)^(2*15) = $1621.70
To calculate the future value of an investment after a certain period of time, you can use the formula for compound interest:
FV = P(1 + r/n)^(nt)
Where:
FV = Future Value
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In the given example, we have an initial investment of $500, an annual interest rate of 8%, and interest is compounded semiannually. We want to find the future value after 15 years.
Using the formula, we substitute the values:
FV = $500(1 + 0.08/2)^(2*15)
FV = $500(1 + 0.04)^(30)
FV = $500(1.04)^30
FV ≈ $1621.70
Therefore, after 15 years with an 8% annual interest rate compounded semiannually, your $500 investment would grow to approximately $1621.70.
If you have another question or need further explanation, feel free to ask!