Compounded semi-annually

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Reference no: EM13753734

You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will pay you 7 percent per year for the next 20 years, and 11 percent per year for the last 20 years, compounded semi-annually.

  • How much will you have at the end of 40 years?
  • How much would you have if the 11% was earned in the first 20 years, and the 7% in the last 20 years?
  • What is the present value of your investment?
  • What was the APR for the first 20 years and the last 20 years?
  • How much total interest did you earn during the 40 year period?

Reference no: EM13753734

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