Problema Solution

In 11 years, Joe's automotive must pay $39,500.00 to an ececutive as a retirement bonus. What lump sum can be invested today, at 12% compounded semiannually, so enough money will be available?

Answer provided by our tutors

10 961.45 is the amonut to invest today

x(1.06)^22= 39500

solve for x = 10961.45