Question

Find the present value given the following:Amount needed: $9,350Time in years: 3Interest: 5%Compounded: semiannually

Answer 1

Amount needed (P): $9,350

Time in years (n): 3

Interest (r): 5%

Compounded: semiannually

To find the Amount (A).

we have the formula A, we get,

`A=P(1+((r)/(2))/(100))^(2n)`
`=9350(1+(2.5)/(100))^(2(3))`
`=9350((102.5)/(100))^6`
`=9350(1.025)^6`
`=9350(1.15969)`
`A=10,843.13`

The present value is $10,843.133