Question

How much would you need to deposit in an account now in order to have $5000 in the account in 13 years? Assume the account earns 9% interest compounded semi-annually. Round your answer to the nearest cent.

Answer 1

earns 4.5 % every 6 months or in other words 26 times
x * (1.045)^26 = 5,000
x = 5,000 / 3.14068 = 1,592.01