37.7k views
5 votes
How much money would you have to invest at 7% compounded semiannually so that the total investment has a value of $2,090 after one year?

User Drharris
by
7.6k points

1 Answer

5 votes

Answer:

$1,951.03.

Explanation:

To determine how much money would you have to invest at 7% compounded semiannually so that the total investment has a value of $ 2,090 after one year, the following mathematical calculation must be performed:

X x (1 + 0.07 / 2) ^ 1x2 = 2,090

X x 1,035 ^ 2 = 2,090

X x 1.071225 = 2,090

X = 2,090 / 1.071225

X = 1,951.03

Thus, $ 1,951.03 must be invested at 7% per annum compounded semiannually to have $ 2,090 in the account after one year.

User Martin Fido
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories