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
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> 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
Log On
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):
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
.
$
