When Paulina turned 20 she made a 5573 at a 112 interest rat

When Paulina turned 20, she made a $5,573 at a 11.2% interest rate compounded semi-annually. How much will the investment be worth when she turns 65 years old?

Solution

Amount invested at Age-20 5573 Semi annual interest rate (11.20/2) 5.60% Annual Effective interest 11.51% Future value factor at 11.514% for 45 years 134.8412 Amount worth after Age-65 751470