Lynn Ally owner of a local Subway Shop, loaned $49,000 to Pete Hall to help him open a Subway franchise.Pete plans to repay Lynn at the end of 7 years with 10% interest compounded semiannually. How much willLynn receive at the end of 7 years?

Future value refers to the value of an investment or an asset at a specified date in the future,…

Answered: Lynn Ally owner of a local Subway Shop,…

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

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Lynn Ally owner of a local Subway Shop, loaned $49,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 7 years with 10% interest compounded semiannually. How much will Lynn receive at the end of 7 years?