Question

What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the future value?

Answer 1

Future value of investment			=	Investment * Future value of investment of 1
			=	$         3,100	*	4.050442
			=	$ 12,556.37
Working;
Future value of investment of 1			=	(1+i)^n		Where,
			=	(1+0.042)^34		i	8.4%/2	=	0.042
			=	4.05044225		n	17*2	=	34