Question 357968

{{{A = P(1 + r/n)^(nt)}}}
 
P = principal amount (the initial amount you borrow or deposit) 
r  = annual rate of interest (as a decimal)
t  = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest. 
n  =  number of times the interest is compounded per year  

Apply above to your question:
i need $4500 in 7 years. The bank offers a 2% intrest rate compounded semiannualy. How much would they need to deposit now in order to have $4500 in7 years
.
P is what you're looking for
r is .02
n is 2
t is 7
A is 4500
.
{{{A = P(1 + r/n)^(nt)}}}
{{{4500 = P(1 + .02/2)^(2*7)}}}
{{{4500 = P(1 + .01)^14}}}
{{{4500 = P(1.01)^14}}}
{{{4500/(1.01)^14 = P}}}
${{{3914.83 = P}}}