SOLUTION: i need $4500 in 7 years. The bank offers a 2% intrest rate compounded semiannualy. How much would they need to deposit now in order to have $4500 in7 years

Question 357968: i need $4500 in 7 years. The bank offers a 2% intrest rate compounded semiannualy. How much would they need to deposit now in order to have $4500 in7 years
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
Apply above to your question:
i need $4500 in 7 years. The bank offers a 2% intrest rate compounded semiannualy. How much would they need to deposit now in order to have $4500 in7 years
.
P is what you're looking for
r is .02
n is 2
t is 7
A is 4500
.

$

RELATED QUESTIONS
Richard and Colleen want to save for a boat. They estimate that they'll need about $4,500 (answered by stanbon)

My husband and I want to save for a boat. We estimate that we will need about $4,500.00... (answered by Fombitz)

Todd wants to start a business in 3 years. He figures that he will need $10 000 to start. (answered by josgarithmetic)

julie would like to invest $750.00 of he earnings this week. Julie's bank offers an... (answered by stanbon)

A savings account earns 4.9%, compounded continuously. How much would you need to deposit (answered by ewatrrr)

In 7 years I want to buy a car which most likely will cost 40,000.00. The bank offers an... (answered by jerryguo41,MathTherapy,greenestamps)

Willie owns and manages a number of real-estate rental properties in town and enjoys... (answered by solver91311)

How much do you need to invest if the intrest rate is 5% and you need a total of $1800 in (answered by LinnW)

what will a deposit of 4500 if left in the bank for 5 years at 8% compounded... (answered by rfer,stanbon)