How much money should be deposited today in an account that earns 4% compounded semi annually so that it will accumulate to 13,000 in 3 years?

MYJ World asked Jun 19, 2023

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MYJ World asked Jun 19, 2023

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29 votes

Answer:

$11543.63

Explanation:

Plug information into A=P(1+r/n)^nt

13000 = P(1+(.04/2))^(2*3)

13000 = P(1.02)^6

Isolate P

13000/(1.02^6) = P

P = $11543.63

Alanna answered Jun 24, 2023

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