Question
It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. Your father offers to give you $400
It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. Your father offers to give you $400 on January 1, 2020. You will then make six additional equal payments each 6 months from July 2020 through January 2023. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2023?
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
