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yuradex [85]
3 years ago
5

Present Value for Two Future Cash Flows Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually,

will permit 2 withdrawals: $40,000 at the end of 4 years and $50,000 at the end of 10 years. Analyze the problem to determine the required deposit. Round your answer to two decimal places. $________.
Business
1 answer:
sweet-ann [11.9K]3 years ago
3 0

Answer:

I dont know the answer but I know how to solve it :3 I also helped you. What grade is this for?

Explanation:

  1. Calculate the value of 40,000 that can be withdrawn at the end of 4 years.
  2. Future Value- 40k
  3. Interest rate %6 (divide 12 by 2)
  4. 4 years x 2
  1. Then Calculate 50,000
  2. future value- 50,000
  3. interest rate- 6% (12/2)
  4. 10 years x 2
  5. Factor is 0
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