Asked by Rebecca Rivera on May 30, 2024
Verified
What amount three years ago is equivalent to $4,800 on a date 1½ years from now if money earns 8% compounded semi-annually during the intervening time?
Compounded Semi-annually
Interest calculation method that adds interest to the principal sum twice a year, resulting in interest accumulation on interest already accrued.
- Ascertain the contemporary value of a future amount with consideration to the time value of money.
- Acquire knowledge on the influence of inflation on the value of currency and calculate the future or past equivalent of a given amount.
Verified Answer
ZK
Learning Objectives
- Ascertain the contemporary value of a future amount with consideration to the time value of money.
- Acquire knowledge on the influence of inflation on the value of currency and calculate the future or past equivalent of a given amount.