## sydnoelle one year ago Marcus wants to purchase a home in six years. He will contribute $2500 each year to a savings account with 2.64% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment? • This Question is Closed 1. sydnoelle @Lena772 2. Lena772 I don't know, sorry. 3. sydnoelle @dumbcow 4. dumbcow do you have a financial calculator? if so just plug in N = 12 I = 2.64/2 PV = 0 PMT = 2500 compute FV 5. dumbcow oh wait sorry that is not right first find effective annual growth rate $(1 + \frac{.0264}{2})^2 - 1$ set this as I N = 6 PV =0 PMT = 2500 6. sydnoelle whats next 7. dumbcow thats it, it will compute the future value do you have a financial calculator? 8. sydnoelle no 9. sydnoelle Katherine invested$1225 in a savings account which earns 3.25% interest compounded semiannually. What will the account be worth in 7 years?

10. dumbcow

haha what , that is same question as your last post i gave the formula for compound interest to solve this problem

11. dumbcow

so you have to do it by hand....hmm im guessing your class gave you a list of formulas to use then

12. dumbcow

http://en.wikipedia.org/wiki/Future_value#Compound_interest $FV = 2500* \frac{(1+r)^n - 1}{r}$ n = 6 r = .02657424