Posted by **Anonymous** on Friday, November 11, 2011 at 4:36pm.

Ed long promised to pay is son $400 semiannually for 12 years. Assume Ed can invest his money at 6 % in an ordinary annuity. How much must Ed invest today to pay his son $400 semiannually for 12 years?

- Math -
**Reiny**, Friday, November 11, 2011 at 5:00pm
i = .06/2 = .03

n = 24

Present value = 400(1 - 1.03^-24)/.03

= ....

you do the button-pushing

- Math -
**Bethany Ann**, Saturday, October 27, 2012 at 4:13pm
12 years x2 =24periods

6%/2=3%

24 periods @3%

400 x 16.9355= $6,774.20

## Answer This Question

## Related Questions

- math - Ed Long promised to pay his son $400 semiannually for 12 years. Assume Ed...
- Finance - Nancy Bellow promised her son she would pay him $600 a quarterly for ...
- math - how much money should you invest now to have 5000 in 11 years if you ...
- math - how much money should you invest now to have 7000 in 11 years if you ...
- math - how much money should you invest now to have 6000 in 11 years if you ...
- math - After purchasing the apartment, Seth receives a street, sewer, and gutter...
- Math - Jason Printing has $85,000 to invest. They can invest in Wilder Revenue ...
- math - Jim wants to deposit money in an account to save for a new stereo system ...
- finance - Q.1.Differentiate future value from present value and explain how ...
- Math - Alice Longtree has decided to invest $400 quarterly for 4 years in an ...

More Related Questions