USA: +1 (725) 712-1730 
Sign in
| Table | |||||||||
| Future Value or Compound Amount of $1.00 | |||||||||
| Rate per period | |||||||||
| Periods | 1% | 1.5% | 2% | 2.5% | 3% | 4% | 5% | 6% | 8% |
| 1 | 1.01000 | 1.01500 | 1.02000 | 1.02500 | 1.03000 | 1.04000 | 1.05000 | 1.06000 | 1.08000 |
| 2 | 1.02010 | 1.03023 | 1.04040 | 1.05063 | 1.06090 | 1.08160 | 1.10250 | 1.12360 | 1.16640 |
| 3 | 1.03030 | 1.04568 | 1.06121 | 1.07689 | 1.09273 | 1.12486 | 1.15763 | 1.19102 | 1.25971 |
| 4 | 1.04060 | 1.06136 | 1.08243 | 1.10381 | 1.12551 | 1.16986 | 1.21551 | 1.26248 | 1.36049 |
| 5 | 1.05101 | 1.07728 | 1.10408 | 1.13141 | 1.15927 | 1.21665 | 1.27628 | 1.33823 | 1.46933 |
| Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. | |||||||||
| Table values can be generated using the formulaFV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper N | |||||||||
.Find the future value and compound interest on $6,000 at 4% compounded semiannually for two years. Use the Future Value or Compound Amount of $1.00 Table or the future value and compound interest formula.
Expert Answer
Formula, FV = PV (i+i/m)m*n
PV= 6,000, i= 4%= 0.04, m= 2(Numbers of times compounding is done in a year), n= Number of years
So,
FV = 6,000 + (1+0.04/2)2*2
=6,494.59
