Question

Sonia wants to have $15,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.)

Answer 1

The amount that Soniah has to invest now is give nas 9,347.5 dollars

How to calculate the amount that is to be investded now

The formula to solve this is given as

`P =( 15000 )/([1 + (0.06)/(2) ]^2^*^8)`

when we oipen the equatio we would have

15000 / (1.03)¹⁶

15000 / 1.604706

15000 / 1.604706

= 9,347.506