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terwin-yes ABan o6 muón dijch trang nay khong? Không Dich BUS 14A Section 35055

ID: 2409309 • Letter: T

Question

terwin-yes ABan o6 muón dijch trang nay khong? Không Dich BUS 14A Section 35055 Canvas Natale Nguyen &I; 6/12/18 1 Quiz: Chapter 5 Quiz Submit Quiz This Question: 1 pt 2 of 7 (0 complete) This Quiz: 10 pts possible Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $5000 at 4% compounded semiannually for 8 years The present value is (Do not round until the final answer. Then round to the nearest cent as needed.) Enter your answer in the answer box.

Explanation / Answer

The Present Value is $3,642.23

Interest Rate = 4% / 2 = 2% [ Semi annual compounding ]

Number of years = 8 Years x 2 = 16 Years [ Semi annual compounding ]

Present Value = Future Value x [ PVF 2%,16 Years]

= $5,000 x 0.7284458

= $3,642.23