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13 August, 11:22

Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?

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  1. 13 August, 12:53
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    Answer: $59,780.65

    Explanation:

    To find out what she would accept today, we need to apply the present value formula which is = V. P (1+i) ^-n

    So, $80,000 (1+6%) ^-5 = $59,780.65
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