Respuesta :
Answer:
The amount of funds to be invested today is $69,371.70
Explanation:
The amount to be invested today can be computed using the modified present value formula as shown below:
Present value=fv*(1+r/2)^-(N*2)
The number 2 is to show that interest is semi -annual
fv is the amount of funds expected in 15 years of $225,000
r is the rate of return at 8% annually
N is the number of years of savings which is 15
pv=225000*(1+8%/2)^-(15*2)
=225000*(1.04)^-30
=225000*0.308318668
pv=$69,371.70
Answer:
$69371.1
Explanation:
To calculate how much Sam long anticipate to need approximately use the following method
We are given the following values
A = 225000
rate (r) = 8/100 = 0.08%
n = 2
t = 15years
Using the following formula
A = P ( 1 + r/n) ^ nt
Substituting it in to the formula, we have
225000 = P ( 1 + (0.08/2)^30
Making P the subject of formula
P = 225000 / ( 1 + (0.08/2)^30
Because P is what we need to find, which is the principal
P = 225000 / ( 1 + (0.08/2)^30
P = $69371.1
