Answer:
FV= $2,139.71
Step-by-step explanation:
Giving the following information:
You invest $1,900 at 4% and it's compounded semi-annually (twice a year) for 3 years.
First, we need to calculate the semiannual interest rate:
Semmi-annual interest rate= 0.04 / 2= 0.02
To calculate the future value, we need to use the following formula:
FV= PV*(1 + i)^n
PV= $1,900
i= 0.02
n= 2*3= 6 semesters
FV= 1,900*(1.02^6)
FV= $2,139.71
