# How much is half a million dollars

You receive an inheritance of half a million dollars today and will also receive a million dollars from an investment in exactly 2 years’ time. If you decide to spend \$373.000 now but save the remainder at 11.5% pa compounded daily, how much will you have in year 2? \$1.294,527.79 \$1.159.836,41 \$1.023,396.58 \$1363.592.62

Solution 4 You receive half a million dollar today ,so, that means you receive \$500,000 today and you decide to spend \$373,000 now now so you have \$ 500,000 – \$373,000 \$127,000 to save Amount to save now (P)- \$127,000 Interest Rate (e) = 11.5% poa. or 0.115 Time (t) = 2 year on daily basis , so, compounding is done No. of compounding in a a year (n) = 365 Future value after 2 years a int t Ev= (**)]
+ 0,115 12X 365 365 1997 ole = \$127,000 (1+0.00031506849)”. ) 89 = \$127,000 (1.00031506849) \$ 127,000. 6844))30 = \$127,000 1.25855441763] \$159,836.411039 02 \$ 159,836.41 (box) а a You will also receive a million, that is, \$1,000,000 in 2 year’s time in exactly iso, 2 is The punown you will have in year 2 000 \$ 159, 836.41 + \$1,000,0 = \$1,159,836,41 Answer

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