SOLUTION: An investment company pays 6 %compounded semiannually. You want to have $ 23000
in the future.
​
(A) How much should you deposit now to have that amount 5 years from​
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-> SOLUTION: An investment company pays 6 %compounded semiannually. You want to have $ 23000
in the future.
​
(A) How much should you deposit now to have that amount 5 years from​
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Question 1068981: An investment company pays 6 %compounded semiannually. You want to have $ 23000
in the future.
(A) How much should you deposit now to have that amount 5 years from now?
(Round to the nearest cent.)
(B) How much should you deposit now to have that amount 10 years from now?
(Round to the nearest cent.) Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! Amount = Principal(1+r/2)^2*5 where r is the annual rate divided by the number of compounding periods per year (2) and t is the time (5)
23000 = P(1+0.06/2)^2*5
23000 = P(1+0.03)^10
23000 = P(1.3439) now divide both sides by 1.3439 to get your answer
P = 23000/1.3439 = 17114.37
You do the 10 years.
:
John
