SOLUTION: A couple pays $200 at the end of each 6 months for 3 years into an ordinary annuity paying 4% compounded semiannually. What is the future value at the end of 3 years? (Round your f

Algebra ->  Finite-and-infinite-sets -> SOLUTION: A couple pays $200 at the end of each 6 months for 3 years into an ordinary annuity paying 4% compounded semiannually. What is the future value at the end of 3 years? (Round your f      Log On


   

Question 1127920: A couple pays $200 at the end of each 6 months for 3 years into an ordinary annuity paying 4% compounded semiannually. What is the future value at the end of 3 years? (Round your final answer to two decimal places.)
Answer by ikleyn(52834) About Me  (Show Source):
You can put this solution on YOUR website!
.
FV = 200%2A%28%28%281%2B0.04%2F2%29%5E%283%2A2%29-1%29%2F%28%280.04%2F2%29%29%29 = $1261.62.

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On Ordinary Annuity saving plans,  see the lessons
    - Ordinary Annuity saving plans and geometric progressions
    - Solved problems on Ordinary Annuity saving plans
in this site.

The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.

When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.