Wednesday, August 17, 2011

$12500 due in 2 years compounded semiannually at 5%. How much do I need to fully pay the essment in 2 year?

Willie receives an essment from a town for $12500 due in 2 years to pay for road repairs and new sewer hookups for the properties. How much would he need to invest today in a CD paying 5%, compounded semiannually, to fully pay the essment in 2 years.

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