Question
Alex has to make a payment of $100,000 in exactly 10 years. He is going to save $3,000 at the beginning of every six months.
Alex has to make a payment of $100,000 in exactly 10 years. He is going to save $3,000 at the beginning of every six months. If Alex can earn 7% compounded semiannually on his savings, how much more money will he have to add to the savings at the end of the 10thyear?
A. $9,583.28
B. $11,398.44
C. $24,783.43
D. $6,127.08
E. $12,191.59
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
