What is the future value of $1,720 in 14 years assuming an interest rate of 7.25 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Future value

The future value of $1,720 in 14 years assuming an interest rate of 7.25 percent compounded semiannually is $4,661.61

Step-by-step explanation:

The compound interest formula is given by:

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.

In this problem, we have that

Semianually is twice a year, so .

Also,

So

The future value of $1,720 in 14 years assuming an interest rate of 7.25 percent compounded semiannually is $4,661.61

-2

7 - 9 = -2

reversed:

-2 + 9 = 7