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18 May, 02:45

Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually. How much will Coronado have in the account after 6 years if interest is reinvested?

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  1. 18 May, 05:14
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    Future Value = $156,901.16

    Explanation:

    Giving the following information:

    Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually.

    To calculate the future value of this investment, we need to use the following formula:

    FV=PV * (1+i) ^n

    PV = 98,000

    i = 0.08/2 = 0.04

    n = 6*2 = 12

    FV = 98,000 * (1.04^12) = $156,901.16
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