Question 1113633
Best Motors has hired Robert Trent as its new president. Terms included the company’s agreeing to pay retirement benefits of $17,900 at the end of each semiannual period for 12 years. This will begin in 4,015 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Robert? 
<pre>If the interest rate of 8% were to remain the same, amount needed to pay out $17,900 every 6 months for 12 years, or for 24 periods, would be: $272,920.64. 
This is your FUTURE VALUE, or the amount needed in 4,065 days, or in {{{matrix(1,4, "4,015"/365, "=", 11, years)}}}
The PRESENT VALUE, based on a FUTURE VALUE of $272,920.64, an interest rate of 8%, semi-annual compounding periods, and time of 11 years ({{{"4,015"/365}}}) = {{{highlight_green("$115,160.33")}}}.
This is the required deposit, TODAY!!