Find the amount that should be set aside today to yield the desired future amount. Future amount needed, $7000, interest rate, 12%, compounding., Semiannually, investment time, two years. (see attached chart)
Dewey Sykes plans to open a business and four years when he retires. How much must he invest today to have $10000 when he retires if the bank pays 2% annually, compounded quarterly? (see attached chart)© BrainMass Inc. brainmass.com October 25, 2018, 9:53 am ad1c9bdddf
Future amount = $7000
Interest rate = 12% compounded semiannually
Investment period = 2 years
Rate per period = 12%/2 = ...
A guide for compounding interest problems
Future Value/Interest Question Sample Solutions
18. Find the amount that should be set aside today to yield the desired future amount.
Future amount needed $9000
Interest rate 48%
Compounding period Quarterly
Investment time 4 years
19. Rosa Burnett needs $6,000 in three years to make the down payment on a new car. How much must she invest today if she receives 2.5% interest annually, compounded annually?View Full Posting Details