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Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?
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Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?

User Vectrobyte
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1 Answer

4 votes
Answer: $59,780.65

Explanation:

To find out what she would accept today, we need to apply the present value formula which is= V.P(1+i)^-n

So, $80,000(1+6%)^-5= $59,780.65
User Arjunkhera
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