Could someone please look over my work and correct it
A person made semi-annual deposits of $490 into an account that pays 5.1% a interest compounded bi-weekly, for 6 years. Determine the future value of the investment.
N= 6*2= 12
I= 5.1
PV= 0
PMT= -490
(FV) = -6964.393519
P/Y= 2
C/Y= 12
This is a complicated question.
To use our general formulas, the payment period must coincide with the interest period. With your data it doesn't.
Your payments are made semi-annually, while the interest is compounded biweekly.
I will take the definition of "bi-weekly" to mean every two weeks.
since the payments are made semi-annually, we have to convert the bi-weekly interest period to a semiannual equivalent
let the semi-annual rate be j
given bi-weekly rate = .051/26 = .001961538
then (1+j)^2 = 1.00196538^26 , based on one year
1 + j = 1.00196538^13
j = .025802
so we can now calculate at the semi-annual rate of .0258
amount = 490(1.025802^12 - 1)/.025802
= $6790.56
your data summary makes absolutely no sense to me.