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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
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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
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