Newton Kress plans to give his son $12,500 when his son turns 21, which will be 5 years from now. If Newton finds an investment that will pay 8% compounded semiannually, compute the amount that he must invest today to achieve his goal. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

Question

Newton Kress plans to give his son $12,500 when his son turns 21, which will be 5 years from now. If Newton finds an investment that will pay 8% compounded semiannually, compute the amount that he must invest today to achieve his goal. (Use Tables 16-1A&B or 16-2A&B or a calculator.)​

Tanner Cereghino · Accepted Answer

Final Answer : 0.08 ¸ 2 = 0.04; 2 ´ 5 = 10;$12,500 ´ 0.67556 = $8,444.50 invest today​

Newton Kress plans to give his son $12,500 when his son turns 21, which will be 5 years from now. If Newton finds an investment that will pay 8% compounded semiannually, compute the amount that he must invest today to achieve his goal. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

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Newton Kress plans to give his son $12,500 when his son turns 21, which will be 5 years from now. If Newton finds an investment that will pay 8% compounded semiannually, compute the amount that he must invest today to achieve his goal. (Use Tables 16-1A&B or 16-2A&B or a calculator.)​

Definitions

Learning Objectives

Learning Objectives

Related questions

Newton Kress plans to give his son $12,500 when his son turns 21, which will be 5 years from now. If Newton finds an investment that will pay 8% compounded semiannually, compute the amount that he must invest today to achieve his goal. (Use Tables 16-1A&B or 16-2A&B or a calculator.)