Homework Help: Math

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 - Jim wants to deposit money in an account to save for a new stereo system ...
math - Ed, Ethan and Nathan are playing a game. Ed has won11 rounds, Ethan has ...
Finance - Gretta wants to retire in 13 years. At that time she wants to be able ...
business math - Ray Long wants to retire in Arizona when he is 70 years of age. ...
business and finance - Ray Long wants to retire in Arizona when he is 70 years ...

For Further Reading

First Name:
School Subject:
Answer: