3 ACTIVITY: Find the present value of 50,000 due in 4 years if money is invested at \( 12 \% \); a. Compounded quarterly b. Compounded monthly c. Compounded semi-annually
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The formula is: PV = FV / (1 + r/n)^(nt) where: - FV is the future value of the money (in this case, $50,000) - r is the annual interest rate (in this case, 12% or 0.12) - n is the number of times the interest is compounded per year - t is the number of years Show more…
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