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Leno4ka [110]
3 years ago
8

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

Mathematics
1 answer:
yarga [219]3 years ago
7 0
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
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