Question

Every six months, Jamison deposits $450 into an interest-bearing account to save for her children’s tuition. The interest rate on the account is 6.8% compounding semiannually. What is the present value of the investment if Jamison’s children leave for college in 8 years?

$4,600.84

$4,307.90

$5,483.45

$5,669.89

Answer 1

so it would be $450*6.8%*8

Answer 2

@Zale101

Answer 3

0.068?

Answer 4

i got 244.8 what did i do wrong

Answer 5

@Zale101

Answer 6

okay

Answer 7

@ankit042

Answer 8

You guys are not considering compounding...also rate is semiannual so there are 8*2 periods. I am getting B as answer