Please solve this compound interest question
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Please solve this compound interest question

[From: ] [author: ] [Date: 11-10-02] [Hit: ]
5043260.96-FV = 1500*(1+0.FV = $34,574.......
I have been trying to answer this question but I do not know what specific formula to use or how to derive from a formula to get the answer. I am clueless about this problem. Any help is appreciated. Thank you

Sara decides to set up a retirement fund by depositing $1,500 at the end of each month for 40 years. how much she will have then, if the interest rate is 8% compounded semiannually?
a. 5,043,260.97
b. 5,100,098.97
c. 5,908,080.97
d. none

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8/2=4% interest rate is the effective rate for 6 months
(1.04)=(1+x)^6 This is to find the effective monthly rate.
x=.0065581969
[1500((1.0065581969)^480-1)]/[1.0065581…
5043260.96

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FV = 1500*(1+0.8e-1*(1/2))^80

FV = $34,574.70
1
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