tracy wants to withdraw $1,000 at the end of each semiannual period for 3 years. interest is 6% annually. how much must she invest today to receive this stream of payments?

Respuesta :

Stacy must invest $12,000 today to receive the stream of payments.

What is investment?

Investment is the commitment of funds toward the acquisition of an asset with the goal of achieving a growth in value over time. A current item, such time, money, or effort, must be sacrificed in order to invest. The goal of investing in finance is to profit from the asset that is being financed. The return can take the form of income from investments like dividends, interest, or rental income, as well as a combination of capital gains and income. It can also take the form of unrealized capital appreciation (or depreciation) or income from investments like unrealized capital gains. The return may also consist of currency gains or losses as a result of variations in foreign exchange rates. Riskier ventures typically entail higher expected returns for investors.

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