Sandra deposits 3000 in an ordinary annuity at the end of ea

Sandra deposits $3000 in an ordinary annuity at the end of each semiannual period at 5% interest compounded semiannually. Find the amount she will have on deposit after 20 years.

Solution

money deposited = $ 3000

periods = n = 2

time = 20 years

rate of interest = 5% = .05 /2 = .025

therefore , amount she have = 3000 [ ( 1+ .025)^40 - 1 ] / .025

= $ 202207.66