An investment will pay $5,500 every 2 years for the next 40 years.The annual rate of interest is 12 percent.What is the value of this investment at the end of Year 40?

Name: An investment will pay $5,500 every 2 years for the next 40 years.The annual rate of interest is 12 percent.What is the value of this investment at the end of Year 40?
Brand: Quizplus
Rating: 4.9 (66 reviews)

Question

Quizplus · Accepted Answer

2-year rate = 1.12² - 1 = 0.2544,or 25.44% FV = $5,500{[(1.2544)^40/2 - 1] / 0.2544} = $1,990,095.67 11ea5bb7_de38_363f_8724_7bb942b84c23_TB1005_00

An Investment Will Pay $5,500 Every 2 Years for the Next