document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1004914>Question 1004914</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much must you deposit in an account that pays 7% semi-annual interest, compounded annually, to have a balance of 4000$ in 15 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #621288 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=621288\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> How much must you deposit in an account that pays 7% semi-annual interest, compounded annually, to have a balance of 4000$ in 15 years?<BR>\n" );
document.write( "So you get paid 7% twice per year for a total of 14% per year. Correct? If that's the case:<BR>\n" );
document.write( "FV= PV(1+r/n)^nt where <BR>\n" );
document.write( "FV is the Future Value<BR>\n" );
document.write( "PV is the Present Value<BR>\n" );
document.write( "r is the interest rate<BR>\n" );
document.write( "n is the number of periods in a year (in your case: 1 period because it's compounded annually)<BR>\n" );
document.write( "t= time<BR>\n" );
document.write( "4000= PV(1+.14)^15<BR>\n" );
document.write( "4000= PV(7.138) Divide both sides by 7.138:<BR>\n" );
document.write( "PV= 568.34 </SPAN>\n" );
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