Question
An investor deposits $500.00 in a simple ordinary annuity at the end of each six- month payment period. This annuity earns 6% per year,
An investor deposits $500.00 in a simple ordinary annuity at the end of each six- month payment period. This annuity earns 6% per year, compounded semiannually a) Find the future value if payments are made for 6 years. (Round your answer to the nearest cent.) b) Find the future value if payments are made for 20 years. (Round your answer to the nearest cent.) c) How much interest is earned over the 20-year term in part (b)? (Round your answer to the nearest cent.)
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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