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what sum must an investor invest now in order to obtain a stable income of 3000 payable every 6 months for 4 years startin

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What sum must an investor invest now in order to obtain a stable income of £3000, payable every 6 months for 4 years starting in 6 months' time, when the nominal interest rate is 8% per year semi-annual compounding? [Report your answer using 2 decimals, e.g. 1234.56. Do not give unit of measurement (£ or pounds).]

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Answer to a math question What sum must an investor invest now in order to obtain a stable income of £3000, payable every 6 months for 4 years starting in 6 months' time, when the nominal interest rate is 8% per year semi-annual compounding? [Report your answer using 2 decimals, e.g. 1234.56. Do not give unit of measurement (£ or pounds).]

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103 Answers

3000\times\frac{1-\left(1+\frac{8\%}{2}\right)^{-2\times4}}{\frac{8\%}{2}}=20198.23

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