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?
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t= 8 years
r= 11/2 =5.5%
t= 8*2= 16
PV= $80,000/ (1+0.055)^16
PV to the nearest cents is $33, 966.50
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