Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?

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asked Nov 11, 2021 49.1k views

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Arjunkhera · Answer 1 · 2021-11-18T17:56:55+0000

Answer: $59,780.65

Explanation:

To find out what she would accept today, we need to apply the present value formula which is= V.P(1+i)^-n

So, $80,000(1+6%)^-5= $59,780.65

Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?

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