How much money should be invested today in order to have $8340 at the end of 9 years if the interest paid is a nominal rate of 4.25 percent compounded semi-annually?
The requirement is to find the PV of the future | |
amount of $8,340 receivable after 9 years when | |
discounted at an half yearly rate of 2.125%. | |
The number of periods (half years) would be 9*2 = 18. | |
Thus, the amount to be deposited today (PV) = 8340/1.02125^18 = | $ 5,712.01 |
How much money should be invested today in order to have $8340 at the end of...
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