Question 87176
How much should be invested at 8% compounded 
semiannually in order to have $5000 at the end 
of 8 years 

{{{A = P(1+r/n)^(nt)}}}

Where A = final amount = 5000
P = beginning amount = ? (that's what we are to find)
r = rate expressed as a decimal = 0.08
n = number of compoundings per year = 2
t = number of years = 8

Substituting for everything but {{{P}}}

{{{5000 = P(1+0.08/2)^(2*8)}}}

{{{5000 = P(1+.04)^16}}}

{{{5000 = P(1.04)^16}}}

{{{5000 = P(1.872981246)}}}

{{{5000/1.872981246 = P}}}

{{{2669.540878}}}

Rounding to the next higher penny:

$2669.55

Edwin</pre>