Question

Alex wants to have $3000 in his bank account after 4 years. If the account earns 6% interest compounded 2 times per year, how much should he put in? Round to the nearest cent. A. $2863.32 B. $2238.36 C. $2633.82 D. $2368.23

Answer 1

3000 = p( 1 + .06/2)^(4 * 2)

3000 = p(1.03)⁸

p = 3000/ 1.03⁸

p = 2368.2277029

$2368.23 <-----

Answer 2

3000 = p( 1 + .06/2)^(4 * 2)

3000 = p(1.03)⁸

p = 3000/ 1.03⁸

p = 2368.2277029

$2368.23 <-----