Find the amount that schould be invested now to accumulate following amounts,if te money is compounded as indicated.
$2000 at 9% compund semiannually for 8 years. i don't know how u do this
you take 2000(1+.09/12)^96 and you'll get the answer
No, I don't that's quite what the question asked for. We're asked
"Find the amount that schould be invested now to accumulate following amounts,if te money is compounded as indicated.
$2000 at 9% compund semiannually for 8 years. i don't know how u do this"
You compounded it monthly, we only need to do it every six months so we use
2000= P(1+.09/2)^16 Now solve for P.
The semi-annual rate is 4.5% so i=.045 and n =2*8=16.
Also, we want to find a present value given a future value. Check that I read it correctly.
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