SOLUTION: find the amount accumulated on $500 invested at 8.5% for 3 years compounded semi-annually Would one use the y=ab^x?

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Question 827167: find the amount accumulated on $500 invested at 8.5% for 3 years compounded semi-annually
Would one use the y=ab^x?
Answer by rothauserc(4718) About Me  (Show Source):
You can put this solution on YOUR website!
FV = PV(1+(r/n))^nt where FV is future value, pv is present value, r is
annual interest rate, n is number of periods, t is years, we want to find FV
note that PV is 500, r is 0.085, t is 3 and n is 2, then we have
FV = 500(1 +(0.085/2))^(2*3)
FV = 500(1.0425)^6
FV = 500 * (1.2837)
FV = 641.85
Therefore the future value is $641.85