Answer:
we find that Santiago needs to deposit $3068.96 every six months in order to reach his goal of $75000 at the end of 8 years.
Explanation:
To solve this problem, we can use the formula for compound interest:
FV = PV(1 + r/n)^(nt)
where:
FV is the future value (in this case, the amount Santiago wants to save, $75000)
PV is the present value (the amount Santiago needs to deposit every six months)
r is the annual interest rate (4.8% in this case)
n is the number of times the interest is compounded per year (semi-annually, or 2 times per year in this case)
t is the number of years Santiago is saving for (8 years in this case)
Rearranging the formula to solve for PV, we get:
PV = FV / (1 + r/n)^(nt)
Plugging in the values from the problem, we get:
PV = $75000 / (1 + 0.048/2)^(2*8)
Thus, we find that Santiago needs to deposit $3068.96 every six months in order to reach his goal of $75000 at the end of 8 years.