Problema Solution

. What is the present value of $73,000 in 11 years if the interest rate is 8% compounded semiannually

Answer provided by our tutors

Amount after 11 years compounded semiannually on $73,000 is

A= 73000(1+0.08/2)^11*2

A=73000(1.04)^22

A=73000*2.37

A=173004.07

Amount after 11 years compounded semiannually=$173004.07