Tanisha wants to have $1000 in her bank account in 5 years. How much money should she deposit if her account earns 6% interest which is compounded 2 times per year?

Answer 1

Sum = P(1+i)^n
where Sum = the accumulated sum
P = the amount deposited
i = the periodic decimal interest rate
n = the number of compounding periods

Therefore, Sum = 5000(1+.06/2)^(5x2)