Question 5 • FT GMS AMDM B IC – 72
There are 2 × 12 = 24 semiannual periods, and the interest rate per period is 10% ÷ 2 = 5%. Because each $3,000 deposit is made at the beginning of a period, use the future value of an annuity due: $3,000 × [((1.05)^24 − 1) ÷ 0.05] × 1.05 = $140,181.30. The amount after 12 years is $140,181.30, choice B.
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