Question

It is desired to save $20,000 by depositing $2,000 every 6 months in an investment that pays 12% compounded semiannually. Se quiere ahorrar $20,000 depositando $1,000 cada 6 meses en una inversión que paga 12% compuesto semiannually. What would be the approximate value of N in years? ¿Cuál sería el valor aproximado de N en años? C 4.30 years (años) C 5 years (años) C 4.12 years (años) C 4.6 years (años)

Answer 1

note :

Fotore Value - 20000 Semi annual Payment c = 2000 R 127. Por Annum = 0.12 I: R No.of Paymens in a year 0.06 n ex (no. 86 Payments in a year - Nxa - 2n Future Value = c((Itigh, ) AN 20000 2000 / (1+0.06. API 0.06) 0.6 (1.06N 1.6 - (11:0630N 1.6 (1.1236) N By trial & Error 1.6= (1.1236) 4.12 N = 4.12 years

By trial and error we need to identify when (1.1236)^N equals to 1.6

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