The future value of $200 received today and deposited at 8 percent compounded semiannually for three years is ________. $380 $15

Question

Gelneren

2 months ago

6

The future value of $200 received today and deposited at 8 percent compounded semiannually for three years is ________. $380 $15

8 $253 $252

Business

2 answers:

soldi70 [3.6K] · Answer 1 · 2026-03-01T11:24:14+03:00

Response:

$253

Clarification:

To determine this, use the future interest calculation formula:

$A=P(1+\frac{r}{n})^{nt}$

A= Future value

P= Principal amount

R= Rate of interest in decimals

N= Number of compounding periods per unit, or year

T= Duration in years

The interest rate is noted as 8%, which is written as 0.08 in decimal form, compounded semiannually implies it is done twice a year over three years. Inputting these into the formula gives:

$A=P(1+\frac{r}{n})^{nt}\\A=200(1+\frac{.08}{2})^{2*3}\\ A=200(1.04)^6\\a=200(1.2653)\\A=253.06$

This means the future value of the $200 investment is $253.06 after three years.

Free_Kalibri [3.7K] · Answer 2 · 2026-03-01T11:20:50+03:00

Free_Kalibri [3.7K]2 months ago

5 0

The right answer is $253