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I need help in business math!!!!!?

The September 16, 2003, issue of PC Magazine ran an article on the future value function. J. W. Collins invests $1,000 today at 5% interest (compounded semiannually). (a) What is J. W.’s return in 10 years? (b) How much interest will J. W. earn?

PV = 1000
N = 10 x 2 = 20, 2 because semiannually
R = .05 / 2 = .025

1000(1 + .025)^20 = 1638.62

(a) in 10 years, J.W. will receive 1638.62
(b) Since the principal amount is 1000,
then 1638.62 – 1000 = 638.62 dollars in interest

good luck.

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