You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3 years (ordinary annuity) into a new bank account earning interest at 8%. What is the future value of the annuity stream, if the frequency of compounding is 2 times per year?

You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3 years (ordinary annuity) into a new bank account earning interest at 8%. What is the future value of the annuity stream, if the frequency of compounding is 2 times per year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Concept explainers

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.

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You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3 years (ordinary annuity) into a new bank account earning interest at 8%.

What is the future value of the annuity stream, if the frequency of compounding is 2 times per year?

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