Compute interest compounded semiannually

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Reference no: EM13199638

Derek established his own retirement account ten years ago. He has discovered that he can obtain a better rate for the next 10 years at 12% interest compounded semiannually. Consequently, Derek established a new ordinary annuity account (beginning amount $0.00) and he will contribute $7,000.00 semiannually into the account for the next 10 years. What will be the value of this account at the end of the 10 year period?

$244,707.61
$83,652.59
$264,501.86
$257,502.00

none of the above

Reference no: EM13199638

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