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    Migjaid's Avatar
    Migjaid Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 23, 2015, 09:02 AM
    Interest rate
    Miguel decides to set up a retirement fund by depositing $15,000 at the end of each uear for 40 years. How much will he have then, if the interest rate is 8% compounded semiannually.

    Options:
    A. 600000.00
    B. 4053271.89
    C. 5097658.89
    D. 5957050.89
    E. None of the above
    Oliver2011's Avatar
    Oliver2011 Posts: 2,606, Reputation: 746
    Ultra Member
    		  
    #2

    May 24, 2015, 10:00 AM
    Why is Miguel setting up a retirement fund when he can't do math?

    Obviously 40 x $15,000 = $600,000, so it can't be that. Please tell me you figured that one on your own. If memory serves me correctly, 8% semi annually is calculated as 1.0816. Go from there.
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