Find the future value of a $16.
Find the future value of a $160,000 Certificate of Deposit that pays compounded interest every six months at the rate of 4% per year. The CD has a term of 5 years.
A) Calculate the FV (Future Value) using the “Future Value or Compound Amount of $1.00” table in your textbook.
B) Calculate the FV (Future Value) using the formula: FV = P(1 + R)N
C) How much interest was earned on the investment? Use either the result from Part 2a or Part 2b, since they are slightly different for your calculation.
Reminder: Always show work. You can do this by stating the values that you are substituting into the formula