document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1091601>Question 1091601</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An investment company pays 7&#8203;% compounded semiannually. You want to have $16,000 in the future.<BR>\n" );
document.write( "How much should you deposit now to have that amount 5 years from&#8203; now?<BR>\n" );
document.write( "How much should you deposit now to have that amount 10 years from now&#8203;?\r<BR>\n" );
document.write( "<BR>\n" );
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document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #706025 by </B><A HREF=/tutors/aboutme.mpl?userid=mathmate><B>mathmate(429)</B></A><img src=\"/images/stars/stars-10.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mathmate><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=mathmate><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=706025\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Question:<BR>\n" );
document.write( "An investment company pays 7&#8203;% compounded semiannually. You want to have $16,000 in the future.<BR>\n" );
document.write( "How much should you deposit now to have that amount 5 years from&#8203; now?<BR>\n" );
document.write( "How much should you deposit now to have that amount 10 years from now&#8203;? <BR>\n" );
document.write( " <BR>\n" );
document.write( "Solution:<BR>\n" );
document.write( "Present value=P<BR>\n" );
document.write( "Future value=F=16000<BR>\n" );
document.write( "(a) In 5 years, n=5*2=10 half-years<BR>\n" );
document.write( "16000=P(1+0.07/2)^10<BR>\n" );
document.write( "P=16000/(1+0.07/2)^10<BR>\n" );
document.write( "=11342.70 should be deposited now.<BR>\n" );
document.write( "(b) in 10 years, n=10*2=20 half-years<BR>\n" );
document.write( "16000=P(1+0.07/2)^20<BR>\n" );
document.write( "P=16000/(1+0.07/2)^20<BR>\n" );
document.write( "=8041.05 </SPAN>\n" );
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