Nominal annual rate of return


Problem:

Ingrid Birdman can earn a nominal annual rate of return of 12%, compounded semi-annually. If Ingrid made 40 consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will she accumulate at the end of Year 20? Round off to the nearest $1.

A) $57,901

B) $82,024

C) $52,821

D) $64,132

Note: Describe all steps comprehensively.

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Finance Basics: Nominal annual rate of return
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