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How much money should be invested now (rounded to the nearest cent), called the initial investment, in a Corporate Bond investment that yields 8% per year, compounded monthly for 10 years, if you wish it to be worth $30,000 after 10 years?

HINT : A(t)= A0 (1+ r/12)^12t, where A(t) is the final amount, A0 is the initial investment, r is the growth rate expressed as a decline amount, and t is time in years

A.) $3,240.00

B.)$13,515.70

C.)$66,589.00

D.) $13,895.80

 Feb 17, 2016
 #1
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The answer is B.)- $13,515.70. Use this formula to calculate this:

PV=FV(1 + .08/12)^-120

PV=30,000 X (1.006667)^-120

PV=30,000 X 0.4505235.........

PV=$13,515.70

 Feb 17, 2016

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