Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually.
| Amount needed | $ 60,000.00 |
|---|---|
| Length of time needed from today | 4 |
| Interest | 12% |
| Compounded | Semiannually |
Required:
Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following:
- Period used:
- Rate used:
- Factor used:
- What must Tony deposit today so he will have $60,000 in 4 years?
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