Answered step by step

Verified Expert Solution

## Question

1 Approved Answer

# Anthony and Michelle Constantino just got married and recieved $ 3 4 , 0 0 0 in cash gifts for their wedding. How much will

Anthony and Michelle Constantino just got married and recieved $$34,000$ in cash gifts for their wedding. How much will they have on their $25$th anniversary if they place half of this money in a fixed$-$rate investment earning $7$ percent compounded annually? Would the future value be larger or smaller if the compounding period was $6$ months? How much more or less would they have earned with this shorter compounding period? If they place half of this money, PV$,$ in a fixed rate investment earning $7$ percent compounded annually, the amount they will have, FV$,$ on their $25$th anniversary is $$\_\_\_\_\_\_\_.\text{}($Round to the nearest cent$).$

## Step by Step Solution

There are 3 Steps involved in it

### Step: 1

### Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

### Step: 2

### Step: 3

## Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started