Homework Help: value of money

Posted by nmh on Friday, July 8, 2011 at 2:55pm.

Billy Burnett's grandfather willed Billy $10,000 payable on his twenty-first birthday. What will be the value of the bequest when Billy reaches 17 years of age if money is worth 8% compounded semi-annually?

value of money - Damon, Friday, July 8, 2011 at 3:21pm
I will not do all these either.

21 - 17 = 4 years = 8 periods at 4% per period

1.04^8 = 1.36856905

x * 1.36856905 = 10,000

x = $7306.90

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