Wilma saves $12,000 at the end of every six months for 10 years. Assume 10% compounded semiannually and find the present value.

$73,734.84

$137,547.52

$195,589.79

$149,546.52

Question

Mathematics

Marley Baldwin

1 December, 17:10

Wilma saves $12,000 at the end of every six months for 10 years. Assume 10% compounded semiannually and find the present value.

$73,734.84

$137,547.52

$195,589.79

$149,546.52

+2

Answers (1)

Know the Answer?

Benson · Answer 1

Here we use the formula for compound interest given by:

A=p (1+r/100*n) ^ (nt)

where:

A=amount=

p=principle=12000

r=rate=0.1

n=# terms=2

t=time=10 years

thus;

A=12000 (1+0.1/2) ^ (2*10)

A=31839.6

Wilma saves $12,000 at the end of every six months for 10 years. Assume 10% compounded semiannually and find the present value.$73,734.84$137,547.52$195,589.79$149,546.52

Wilma saves $12,000 at the end of every six months for 10 years. Assume 10% compounded semiannually and find the present value.

$73,734.84

$137,547.52

$195,589.79

$149,546.52