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Mekhanik [1.2K]
4 years ago
7

What sum of money today is equivalent to $8,250 2 years from now, if annual interest rate is 4%, compounding semi-annually?

Business
1 answer:
Mariulka [41]4 years ago
5 0

Answer:

$7,621.72

Explanation:

The equation that describes the future value (FV) of an investment (P) at an interest rate (r) for a period of n years, compounded semi-annually is:

FV = P*(1+\frac{r}{2})^{2n}

The amount required to yield $8,250 after 2 years at a rate of 4% per year is:

8,250 = P*(1+\frac{0.04}{2})^{2*2} \\P=\$7,621.72

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If a broker receives a due diligence fee from a buyer under the north carolina standard offer to purchase and contract, when can
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8 0
2 years ago
If the United States government raises the income taxes on the wealthiest Americans, while increasing welfare payments to the po
SSSSS [86.1K]

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(Decrease, Increase)

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3 years ago
The staff at a small company includes: 4 secretaries, 20 technicians, 4 engineers, 2 executives, and 50 factory workers. if a pe
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3 years ago
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Answer:

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