Question
Find the present value of $14000 due in 9 years at the given rate of interest.
(a) 2%/year compounded semiannually?
(b) 5%/year compounded semiannually?
(a) 2%/year compounded semiannually?
(b) 5%/year compounded semiannually?
Answers
Reiny
a) PV = 1400(1.01)^-18
= ....
b) PV = 1400(1.025)^-18
= ....
= ....
b) PV = 1400(1.025)^-18
= ....