document.write( "Question 891878: How much should be deposited in an account paying 4.75% interest, compounded semi-annually, in order to have a balance of $7,000 after 5 years and 6
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Algebra.Com's Answer #540113 by jim_thompson5910(35256) $\"\"$ $\"About$

You can put this solution on YOUR website!
We'll use the formula A = P*(1+r/n)^(n*t) where...\r
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\n" ); document.write( "\n" ); document.write( "A = 7000
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\n" ); document.write( "r = 4.75% = 0.0475
\n" ); document.write( "n = 2 (compounding 2 times per year)
\n" ); document.write( "t = 5 yrs, 6 months = 5.5 years\r
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\n" ); document.write( "\n" ); document.write( "Plug those values in and solve for P to get\r
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document.write( "	A = P*(1+r/n)^(n*t)\r\n" );
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document.write( "	7000 = P*(1+0.0475/2)^(2*5.5)\r\n" );
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document.write( "	7000 = P*(1+0.02375)^(11)\r\n" );
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document.write( "	7000 = P*(1.02375)^(11)\r\n" );
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document.write( "	7000 = P*1.29459242778672\r\n" );
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document.write( "	7000/1.29459242778672 = P\r\n" );
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document.write( "	5407.1071711484 = P\r\n" );
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document.write( "	P = 5407.1071711484\r\n" );
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document.write( "	P = 5407.11\r\n" );
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\n" ); document.write( "\n" ); document.write( "You need to deposit $5,407.11 \n" ); document.write( "

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