In order to pay for college, the parents of a child invest 15,000 in a bond that pays 9 % interest compounded semiannually. How much money will there be in 17 years? Round your answer to the nearest cent.

Question

In order to pay for college, the parents of a child invest  15,000 in a bond that pays 9 % interest compounded semiannually. How much money will there be in 17 years? Round your answer to the nearest cent.

Accepted Answer

Step:1 ：Calculate the future value using the formula: (Future Value = Principal * (1 + (Interest Rate / Number of Compounding Periods))^{(Number of Compounding Periods * Time in Years)})Step:2 ：Plug in the values: (Future Value = 15000 * (1 + (0.09 / 2))^{(2 * 17)})Step:3 ：Calculate the result and round to the nearest cent: (boxed{66,995.42})

Answer

Step: 1 ：Calculate the future value using the formula: (Future Value = Principal * (1 + (Interest Rate / Number of Compounding Periods))^{(Number of Compounding Periods * Time in Years)})Step: 2 ：Plug in the values: (Future Value = 15000 * (1 + (0.09 / 2))^{(2 * 17)})Step: 3 ：Calculate the result and round to the nearest cent: (boxed{66,995.42})

In order to pay for college, the parents of a child invest $\$ 15,000$ in a bond that pays $9 \%$ interest compounded semiannually. How much money will there be in 17 years? Round your answer to the nearest cent.

Answer

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