compound interest buisness

label Business & Finance
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

1.Find the amount that should be set aside today to yield the desired future amount: Future amount = $10,000; rate 1%; compounded semiannually for two years

  2. Compute the amount of money to be set aside to ensure a future value of $4,200 in one year if the interest rate is 7.5% annually, compounded annually.

May 18th, 2015

 just a minute n i will be done

May 18th, 2015

1.

FV=PV(1+R)^1

 PV(1+0.5/100)^4=10000

PV(1.005)^4=10000

PV=$9802.47


2.

PV=(1+7.5/100)^1=4200

PV(1.075)=4200

PV=$3906.98


May 18th, 2015

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May 18th, 2015
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May 18th, 2015
Jun 25th, 2017
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