How much money must be deposited now, at 6% interest compounded semiannually,? - how much money must deposited now, at 6% interest compounded
How much money must be deposited today in order to ensure enhanced 6% interest every six months to a pension of $ 4000 at the beginning of each period of six months for five years?
Friday, January 29, 2010
How Much Money Must Deposited Now, At 6% Interest Compounded How Much Money Must Be Deposited Now, At 6% Interest Compounded Semiannually,?
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Annuity PV = (PMT / i) x [1 - (1 / (1 + i / n) ^ nt]
ReplyDelete1) [4000 / (.06 / 2)] x [1 - (1 / (1 + .06 / 2) ^ (2x5)]
2) 4000/.03 $ x [1 - (1 / (1.03) ^ 10]
3) $ 133,333.33 x [1 - (1/1.3439)]
4) $ 133,333.33 x (1-0.744093)
5) 133,333.33 x $ 0.255906085
6) = $ 34120.81
You can confirm this response, a financial calculator for the solution of the present value
To convert the pension to the board to () the salaries of the early days, PV is multiplied time 1 + i. ..
34,120.81 $ (1.03) = 35,144.43 $
Suppose you want only the answer, not solve, such as:
ReplyDelete1) my fault - Kendrick had this right. If you had an initial amount of $ 35,144.43 in which the contribution was paid by 6%, and a payment of $ 4,000 made at the beginning of each 6 months, you could for the last five years with a zero balance at the end.
2) For a payment of $ 4000 at the beginning of each 6 months for life (eg brand, forever), you have an opening in the amount of $ 137,333.
I hope that helps.
Do your own work ...
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