Answer
$\$ 13,435.19$
Work Step by Step
We are given:
$R=500, i= \frac{0.06}{2}=0.03, n=20$
The amount of an annuity is given by:
$A_{f}=R \frac{(1+i)^{n}-1}{i}$
$A_{f}=500\frac{(1+0.03)^{20}-1}{0.03}=$\$ 13,435.19$
College Algebra 7th Edition
by Stewart, James; Redlin, Lothar; Watson, Saleem
Published by
Brooks Cole
ISBN 10:
1305115546
ISBN 13:
978-1-30511-554-5
Chapter 8, Sequences and Series - Section 8.4 - Mathematics of Finance - 8.4 Exercises - Page 622: 6
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