- the future value of ordinary annuity ; 8% interest compounded semi-annually for 11 years.?
- the future value of ordinary annuity ; 8% interest compounded semi-annually for 11 years.?
- Find the future value of each ordinary annuity, if payments are made and interest is compounded as given?
- What is the future value of an ordinary annuity of $12k per yr, for 3 years, at 9% interest compounded anual?
How do you calculate the future value of an ordinary annuity compounded semiannually?
11
Mar
Amanda
March 11, 2010 at 11:45 am
You need a financial calculator.
N= how many time you get the payment
I= interest rate
PV= 0
PMT= amount you receive
FV= ?? your answer
P/Y=2 (semiannually)
Good luck.
Arbitrage
March 11, 2010 at 11:46 am
The general formula for an ordinary annuity is
FV = PMT * (((1 + i) ^n – 1) / i)
where
FV = future value
PMT = Amount of each payment
i = interest rate per period
n = number of periods
With the semi-annual version, take the annual rate and divide by 2. Multiply the number of years by 2 to get n.