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

$73,734.84

$137,547.52

$195,589.79

$149,546.52

2 Answers

6 votes

Answer:

$149,546.52

Explanation:

Just had the quiz, no clue what the previous person is rambling about.

User Giorgio Ghiatis
by
8.2k points
4 votes
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
User Michael Esteves
by
8.0k points
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