Question

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. $________.

Answer 1

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 Calculate the value of 40,000 that can be withdrawn at the end of 4 years.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