Asked by jjiiddss 0-0
How much money should be invested now (rounded to the nearest cent), called the initial investment, in a Treasury Bond investment that yields 4.75% per year, compounded monthly for 10 years, if you wish it to be worth $20,000 after 10 years?
Answers
Answered by
Reiny
i = .0475/12 = .00395833..
n = 12(10) = 120
PV = 20,000(1.00395833..)^-120
= $12,449.37
n = 12(10) = 120
PV = 20,000(1.00395833..)^-120
= $12,449.37
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.