SOLUTION: An investment company pays 9% compounded semiannually. You want to have $13000 in the future. How much should you deposit now to have that amount 5 years from now?
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Question 311648: An investment company pays 9% compounded semiannually. You want to have $13000 in the future. How much should you deposit now to have that amount 5 years from now? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! An investment company pays 9% compounded semiannually. You want to have $13000 in the future. How much should you deposit now to have that amount 5 years from now?
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A(t) = P(1+(r/n))^(nt)
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13000 = P(1+(0.09/2))^(2*5)
13000 = P(1.045)^10
13000 = P(1.553)
P = $8371.06
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Cheers,
Stan H.
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