Problema Solution

I want to invest some money, for my college education.

If I invest $1375, and leave it alone for 4 years, at 4.25% return, compounded semi-annually......how much will I have in four years?

Answer provided by our tutors

If I invest $1375, and leave it alone for 4 years, at 4.25% return, compounded semi-annually......how much will I have in four years?

A=P*(1+r/q)^nq.

=1375*(1+0.0425/2)^4*2.

=1375*1.02125^8.

=$1626.90.