The managers of a pension fund have invested $1.5 million in U.S. government certificates of deposit (CDs) that pay interest at the rate of 2.6%/year compounded semiannually over a period of 20 years. At the end of this period, how much will the investment be worth? (Round your answer to four decimal places.)
The managers of a pension fund have invested $1.5 million in U.S. government certificates of deposit (CDs) that pay interest at the rate of 2.6%/year compounded semiannually over a period of 20 years. At the end of this period, how much will the investment be worth? (Round your answer to four decimal places.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4P
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The managers of a pension fund have invested $1.5 million in U.S. government certificates of deposit (CDs) that pay interest at the rate of 2.6%/year compounded semiannually over a period of 20 years. At the end of this period, how much will the investment be worth? (Round your answer to four decimal places.)
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