Asked by raquel galvan on May 01, 2024
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How long before a future payment of $1,000 would a payment of just $100 be an economically equivalent alternative? Round your answer to the nearest month. Assume money can earn 4.8% compounded semiannually.
Compounded Semiannually
The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done twice a year.
- Ascertain the time span required for an investment to hit a targeted value through the mechanism of compound interest.
Verified Answer
JD
Learning Objectives
- Ascertain the time span required for an investment to hit a targeted value through the mechanism of compound interest.