Answer to Question #267402 in Financial Math for Ayana Prica

Question #267402

If money is worth 6% compounded bi-monthly (6), find the present value of R 125 700 for 2 years?

Expert's answer

compounded bi-monthly , n =6

$PV = \frac{FV}{(1+i)^n}$

$=\frac{R125,700}{(1+0.06)^{6×2}}$

$=\frac{125,700}{(1.06)^{12}}$

$=R62469.05$

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