14 How much money was depositedsemiannually for the past 15 years if it isnow sufficient to generate a perpetuity of$40,000 every six months beginningtoday? The account earned 8%,compounded semiannually, and will do sogoing forward.Group of answer choices$36,830$17,830$116,830$57,830

The future value of the amount deposited must be equal to the present value of the perpetuity.…

Answered: How much money was deposited…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Similar questions

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Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
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How much money was deposited semiannually for the past 15 years if it is now sufficient to generate a perpetuity of $40,000 every six months beginning today? The account earned 8%, compounded semiannually, and will do so going forward. Group of answer choices $36,830 $17,830 $116,830 $57,830