Find the amount that should be set aside today to yield the
Find the amount that should be set aside today to yield the desired future amount
Future amount needed: $14,000
Interest rate: 4%
Compounding period: quarterly
Investment time: 3 years
Present value of $1.00 at 4% compounded 12 times = 0.62460
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Find the amount that should be set aside today to yield the desired future amount.
Find the future value of an ordinary annuity of $8000 paid semiannually for six years at 6% annual interest compounded semiannually. How much was invested? How much interest was earned?
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