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Popular >

Find the present value of 10,000 if interest is paid at a rate of 6% per year, compounded semiannually, for 3 years.

Solution

Find the present value of 10, 000 if interest is paid at a rate of 6% per year, compounded semiannually, for 3 years.

Solution

Amount : 11940.52

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.06}{2})^{2 \cdot 3}

10000 (1 + \frac{0.06}{2})^{2 \cdot 3} = 11940.52296 \dots

Round to the nearest hundredth:

11940.52

Amount : 11940.52

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