w grow into 70,274 at an interest rate of 8.4% compounded semiannually. C. EFN will limit...

Question

Question

business finance

Answer 1

Answer #1

Amount required 2 years from today is equal to present value of annuity

= 15,000*PVAF(6%, 20 years)

= 15,000*11.4699

= $172,048.5

Amount required to be deposited today = 172,048.5/(1.06)^2

= $153,122.55

Answer 2

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