Problema Solution

find the amount of the ordinary annuity based on the information given.

pv=12,500

percent rate=6%

=interest compound semi-annually

period= 8 years

what is the Future Value

Answer provided by our tutors

FV = PV (1+r)n*2

      = 12500 (1+0.06/2)8*2

      = 12500 (1.03)16

      =12500*1.604706439

      = 20058.83049