I'm having trouble with two questions
- A fund earns a nominal rate of interest of 6% compounded every two years. Calculate the amount that must be contributed now to have 1000 at the end of six years.
Since it is compounded every two years, then the interest is divided by $.5$, so I get:
$Present Value = 1000*1/(1+2*0.06)^3$ = $711.78$
Is that correct?