Janet Ring estimates she will need $35,000 for a new computerized office system. Janet decided to put aside the money today so that it will be available in 10 years. Pod Bank offers Janet 8% interest compounded semiannually. How much must Janet invest today to have $35,000 in 10 years?

Question

Quizplus · Accepted Answer

8% / 2 = 4%; 10 × 2 = 20 periods; $35,000 × .4564 = $15,974.

Janet Ring Estimates She Will Need $35,000 for a New