A real estate development company is planning to build five homes, each costing $195,000, in 2 years. The Galaxy Bank pays 6% interest compounded semiannually. How much (in s) should the company invest now to have sufficient funds to build the homes in the future?

A real estate development company is planning to build five homes, each costing $195,000, in 2 years. The Galaxy Bank pays 6% interest compounded semiannually. How much (in s) should the company invest now to have sufficient funds to build the homes in the future?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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A real estate development company is planning to build five homes, each costing $195,000, in 2 years. The Galaxy Bank pays 6% interest compounded semiannually. How much (in $) should the company invest now to have sufficient funds to build the homes in the
future?
$

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