Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00. The fund earns 8.00% compounded semi-annually. How many payments will Tom receive? a) 10.54 b) 23.36 c) 46.72 d) 4.3
Added by Erica R.
Step 1
Since Tom receives $6000.00 every six months, we can divide this by the semi-annual interest rate to find the present value of the payments: PV = PMT / (1 + r/2)^n where PV is the present value of the payments, PMT is the payment amount, r is the semi-annual Show more…
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