A real estate development company is planning to build five homes, each costing $155,000, in 2 1/2years. The Galaxy Bank pays 6% interest compounded semiannually. How much (in $) should the company invest now to have sufficient funds to build the homes in the future?
A real estate development company is planning to build five homes, each costing $155,000, in 2 1/2years. The Galaxy Bank pays 6% interest compounded semiannually. How much (in $) should the company invest now to have sufficient funds to build the homes in the future?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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A real estate development company is planning to build five homes, each costing $155,000, in 2 1/2years.
The Galaxy Bank pays 6% interest compounded semiannually. How much (in $) should the company invest now to have sufficient funds to build the homes in the future?
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