Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $800 deposited semiannually at 6.6% for 10 years.
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $800 deposited semiannually at 6.6% for 10 years.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Determine the amount of the ordinary
Expert Solution
Step 1
Formula to calculate FV:
F = P * ([1 + i]^N - 1 )/i
in which :
P = $800 semiannually deposited
i = semiannual rate which is 6.6%/2 = 3.3%
t = no. of deposits which is 10 Years * 2 = 20 deposits
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