## Question

# Harold Lau will deposit enough money today so that his account will contain $20,000 in 10 years. The account will pay interest at 8% compounded

Harold Lau will deposit enough money today so that his account will contain $20,000 in 10 years. The account will pay interest at 8% compounded semiannually. Compute the interest (in dollars) that Harold will earn during the 10 years. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

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Question 24 - Harold Lau will deposit enough money today so that his account will contain $20,000 in 10 years. The account will pay interest at 8% compounded semiannually. Compute the interest (in dollars) that Harold will earn during the 10 years. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

Select $10,736.20 as your answer

$10,736.20

Select $10,507.20 as your answer

$10,507.20

Select $9,127.80 as your answer

$9,127.80

Select $10,872.20 as your answer

$10,872.20

## Step by Step Solution

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### Step: 1

To solve this problem well calculate the present value PV of the 20000 that Harold wants to have in ...### Get Instant Access to Expert-Tailored Solutions

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### Step: 2

### Step: 3

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