An investment company pays 4% compounded semiannually. You want to have $19,000 in the future. How much should you deposit now to have that amount 5 years from now?
P = $ ?
(Do not round until the final answer. Then round to two decimal places as needed.)
We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.
19000=P*(1+0.04/2)^(2*5)
P=19000/(1+0.04/2)^(2*5)
=19000*0.8203483
=$15586.62(Approx).
An investment company pays 4% compounded semiannually. You want to have $19,000 in the future. How...
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