Question
Find the future value of an investment of $740,000 whose interest rate is 3.65% per year with bimonthly compounding, considering that the term of the operation will be 19 quarters.
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Answer to a math question Find the future value of an investment of $740,000 whose interest rate is 3.65% per year with bimonthly compounding, considering that the term of the operation will be 19 quarters.
Hank
4.8106 Answers
1. Calculate the number of years \( t = \frac{19}{4} = 4.75 \).
2. Calculate the interest rate per period: \( \frac{r}{n} = \frac{0.0365}{6} = 0.00608333\).
3. Calculate the number of periods: \( nt = 6 \times 4.75 = 28.5 \).
4. Substitute these values into the formula:
FV = 740,000 \left(1 + 0.00608333\right)^{28.5}
5. Simplify and calculate \( FV \):
FV = 740,000 \times (1.00608333)^{28.5}
6. FV \approx 896,119.12
Therefore, the future value of the investment is approximately 896,119.12
2. Calculate the interest rate per period: \( \frac{r}{n} = \frac{0.0365}{6} = 0.00608333\).
3. Calculate the number of periods: \( nt = 6 \times 4.75 = 28.5 \).
4. Substitute these values into the formula:
5. Simplify and calculate \( FV \):
6.
Therefore, the future value of the investment is approximately
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