ZuoTi.Pro
Question

Debra King wants to accumulate $9,000 by the end of 12 years. If the annual interest...

Debra King wants to accumulate $9,000 by the end of 12 years. If the annual interest rate is 9.00 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Here, we’ve Future Value = $9,000

Semi-annual interest rate (n) = 4.50% [9.00% x ½]

Number of period (n) = 24 Years [12 Years x 2]

Therefore, the Present Value = Future Value / (1 + r) n

= $9,000 / (1 + 0.045)24

= $9,000 / (1.045)24

= $9,000 / 2.876013834

= $3,129.33

“Hence, the she has to invest today to achieve her goal will be $3,129.33”

0 0
Add a comment
Know the answer?
Add Answer to:
Debra King wants to accumulate $9,000 by the end of 12 years. If the annual interest...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Karen White wants to accumulate $13,500 by the end of 12 years. If the annual interest...

    Karen White wants to accumulate $13,500 by the end of 12 years. If the annual interest rate is 5.70 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment $

  • Michelle Walker wants to accumulate $13,500 by the end of 12 years. If the annual interest...

    Michelle Walker wants to accumulate $13,500 by the end of 12 years. If the annual interest rate is 8.00 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment $

  • Problem 5.14 Patricia Johnson wants to accumulate $12,000 by the end of 12 years. If the...

    Problem 5.14 Patricia Johnson wants to accumulate $12,000 by the end of 12 years. If the annual interest rate is 8.80 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment Click if you would like to Show Work for this question: Open Show...

  • Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of...

    Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of 12 years. If the annual interest rate is 6.40 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment= ? 2)Your brother has asked you for a loan...

  • Donald Martin is planning to invest $29,000 today in a mutual fund that will provide a...

    Donald Martin is planning to invest $29,000 today in a mutual fund that will provide a return of 10 percent each year. What will be the value of the investment in 10 years? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Value of investment after 10 years Debra King received a graduation present of $1,000 that she is planning on investing in a...

  • Lisa Anderson is saving to buy a house in five years. She plans to put 20...

    Lisa Anderson is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $41,000 for the down payment. If Lisa can invest in a fund that pays 10.00 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all...

  • Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds...

    Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds have a coupon rate of 6.0 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.) Current market yield % please show steps

  • Problem 8.10 Debra King wants to invest in four-year bonds that are currently priced at $898.49....

    Problem 8.10 Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds have a coupon rate of 6.0 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.) Current market yield = _______%

  • Jessica wants to accumulate $10,000 by the end of 6 years in a special bank account,...

    Jessica wants to accumulate $10,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 6% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the...

  • Question 11 Patricia Johnson is saving to buy a house in five years. She plans to...

    Question 11 Patricia Johnson is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $40,000 for the down payment. If Patricia can invest in a fund that pays 6.00 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (If you solve this problem with algebra round intermediate calculations to 6 decimal places,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT