Question

Eve has a savings bond that will mature 7 years from now at a value of $ 931,000. What is a fair value for Eve's savings bond today, if the market rate of interest for similar items is 4.8% compounded semiannually?

Fill-in the TVM Framework Table:

• If any value is not present, enter the number zero, 0
• For the unknown amount, the amount to be determined, enter a "?"
• For any dollar amounts, leave-off the dollar sign, but enter commas to separate thousands.

Please follow the order of the table in the lecture.

TVM DataFrame

Now, use the values from the table to answer the question. You may want to use all of the methods (calculator, Excel, table, or formula) to make sure that you can arrive at the same answer.

The value of Eve's savings bond today is is $  (round answer to nearest dollar, do not enter dollar sign).

Answer 1