Math question help needed

Accounting
Tutor: None Selected Time limit: 1 Day

You will receive $80,000 inheritance in 8 years. You could invest that money today at 11% compounded semi-annually. What is the present value of inheritance?

Jun 3rd, 2015

Thank you for the opportunity to help you with your question!

FV= $80,000

t= 8 years

11%

compounded semiannually

r= 11/2 =5.5%

t= 8*2= 16 

PV= FV/{1+r)^n

PV= $80,000/ (1+0.055)^16

PV= 33,966.49

PV to the nearest cents is $33, 966.50

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Jun 3rd, 2015

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