Question

Jordan of ers an interest rate of 8%/a compounded semi-annually. How much should Jordan m est now, to the nearest dollar, so that he has enough money to go on a family trip in 3 years? 38. needs $6 000 to take his family on a trip. He is able to make an ivestment which

Answer 1

Explanation:

Given that Jordan wants 6000 dollars after 3 years for making a family trip.

We have to find out the amount invested now to get the required 6000 dollars

We have interest of 8% compounded semi annually.

equivalent rate =
`(8)/(200) =0.04`

If P is the amount invested now, then

`P(1+0.04)^(3*2) =6000\\P =6000(1.04)^(-6) \\P=4741.89`

He has to invest 4741.89 dollars now