Question

Poonam wants to invest in an account today

to have $4000 at the end of 8 years.
If she can invest at 4.25% Compounded
Semi-annually, how much does she need
to invest?

Answer 1

2055.15

Explanation:

A(1+r)^n=4000

A is the money that she need to invest

r is rate

n is the time( depend on monthly or yearly rate)

A(1+4.25%)^16=4000

A=2055.15