If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how much does she need to put into an investment that is paying 8% interest compounded semi-annually? A) $29,308.90 B) $171,198.41 C) $31,327.88 D) $176,996.84
If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how much does she need to put into an investment that is paying 8% interest compounded semi-annually? A) $29,308.90 B) $171,198.41 C) $31,327.88 D) $176,996.84
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how much does she need to put into an investment that is paying 8% interest compounded semi-annually?
A) $29,308.90
B) $171,198.41
C) $31,327.88
D) $176,996.84
Transcribed Image Text:Variable
Definition of Variable
problem
Number of Compounding
N
Periods
1%
Annual Interest (as a %)
PV
Principal or Present Value
PMT Amount of each Payment
FV
Future Value
P/Y
Number of Payments per Year
Number of Compounding
C/Y
Periods per Year
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