A student needs $6000 every six months to pay living expenses while at college. It will take him 8 years to complete his degree. Find the (a) lump sum that must be deposited to meet this need and (b) the interest earned assuming 5% per year, compounded semiannually. Click here to view page 1 of the present value of an annuity table. Click here to view page 2 of the present value of an annuity table. (a) The lump sum is approximately $ (Round to the nearest cent as needed.)
A student needs $6000 every six months to pay living expenses while at college. It will take him 8 years to complete his degree. Find the (a) lump sum that must be deposited to meet this need and (b) the interest earned assuming 5% per year, compounded semiannually. Click here to view page 1 of the present value of an annuity table. Click here to view page 2 of the present value of an annuity table. (a) The lump sum is approximately $ (Round to the nearest cent as needed.)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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Transcribed Image Text:A student needs $6000 every six months to pay living expenses while at college. It will take him 8 years to complete his degree.
Find the (a) lump sum that must be deposited to meet this need and (b) the interest earned assuming 5% per year, compounded
semiannually.
Click here to view Rage 1.of the present value of an annuity table.
Click here to view Rage 2 of the present value of an annuity.table.
(a) The lump sum is approximately $.
(Round to the nearest cent as needed.)
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