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

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