Question
Billy Burnett's grandfather willed Billy $10,000 payable on his twenty-first birthday. What will be the value of the bequest when Billy reaches 17 years of age if money is worth 8% compounded semi-annually?
Answers
Damon
I will not do all these either.
21 - 17 = 4 years = 8 periods at 4% per period
1.04^8 = 1.36856905
x * 1.36856905 = 10,000
x = $7306.90
21 - 17 = 4 years = 8 periods at 4% per period
1.04^8 = 1.36856905
x * 1.36856905 = 10,000
x = $7306.90