Question 309369: Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$14,000 at 10% compounded semiannually for 11 yr
Answer by nyc_function(2741)   (Show Source):
You can put this solution on YOUR website! The correct formula is A = P(1+r/n)^(nt), where A is the accumulated capital, P is the present value of the investment (14,000 in your example), r is the rate (expressed as a decimal, for example 0.10 for 10%), n is the number of times interest is compounded per year (2 in your example for every 6 months and there are TWO six months in one year), and t is the number of years of the invested (11 in your example).
Just plug and solve using a calculator.
A = 14,000[(1 + 0.10)/2]^(2*11)
Can you do it now?
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