SOLUTION: Gil wants to have $9,500 in 7 years. Use the present value formula to calculate how much he should invest now at 2% interest, compounded semiannually in order to reach his goal.
Algebra.Com
Question 1187849: Gil wants to have $9,500 in 7 years. Use the present value formula to calculate how much he should invest now at 2% interest, compounded semiannually in order to reach his goal.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
7 years cpd semiannually is 14 different compounding times
9500=m(1+0.01)^14, the 0.01 being from 0.02/2
m=$8264.65, rounding at the end.
RELATED QUESTIONS
Inez wants to have $15,000 in 2 years. Use the present value formula to calculate how... (answered by richwmiller)
Suppose you wish to have $16,500 in 2 years. Use the present value formula to find how... (answered by richwmiller)
Suppose you wish to have $16,500 in 2 years. Use the present value formula to find how... (answered by richwmiller)
4. Using the present value formula find how much you should invest now at 5.9%... (answered by Theo)
Suppose you wish to have $15,000 in 19 years. Use the present value formula to find how... (answered by richwmiller)
Keishawn wants to have $6,000 in 20 years. Calculate how much he should invest now at 8%... (answered by Finavon)
Lindsay wants to have $5,500 in 15 years. Use Table 11-2 to create a new table factor,... (answered by stanbon)
Sonia wants to have $12,000 in 10 years. Use Table 11-2 to create a new table factor, and (answered by Alan3354)
Sonji wants to have $14,000 in 13 years. Calculate how much she should invest now at 6%... (answered by rfer)