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16 July, 07:32

What is the future value of $2,600 in 19 years assuming an interest rate of 7.9 percent compounded semiannually? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16)) ?

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  1. 16 July, 08:26
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    The future value will be given by the formula:

    FV=p (1+r/100n) ^nt

    where

    p=principle

    r=rate

    n=terms

    t=time

    thus plugging the values in the formula we get:

    FV=2600 (1+7.9 / (100*2)) ^ (19*2)

    FV=$11,331.94

    Answer: $11,331.94
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