document.write( "Question 1127934: How much should a family deposit at the end of every 6 months in order to have $4000 at the end of 6 years? The account pays 5.3% interest compounded semiannually. (Round your final answer to two decimal places.) \n" ); document.write( "
Algebra.Com's Answer #744439 by ikleyn(52803)\"\" \"About 
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    \r\n" );
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document.write( "where  FV is the future value of the account;  P is the semi-annual payment (deposit); r is the semi-annual percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 2, in this case).\r\n" );
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document.write( "From this formula, you get for for the semi-annual payment \r\n" );
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document.write( "    P = \"FV%2A%28r%2F%28%281%2Br%29%5En-1%29%29\".     (1)\r\n" );
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document.write( "Under the given conditions, FV = $4,000;  r = 0.053/2;  n = 6*2.  So, according to the formula (1), you get for the semi-annual payment \r\n" );
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document.write( "    P = \"4000%2A%28%28%280.053%2F2%29%29%2F%28%281%2B0.053%2F2%29%5E%286%2A2%29-1%29%29%29\" = $287.50.\r\n" );
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document.write( "Answer.  The necessary semi-annual deposit value is $287.50.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain EVERYTHING you need to know about this subject, in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons, you will be able to do similar calculations in semi-automatic mode.\r
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