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 buttonpushing

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  Semiannually deposits of $400 are made for 10 years into an annuity that ...
 math  Jim wants to deposit money in an account to save for a new stereo system ...
 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 ...
 business math  Ray Long wants to retire in Arizona when he is 70 years of age. ...
More Related Questions