How much down is needed to get to 25000 at 8 percent interest compounded semianually for 3 .5 years

2 answers

A = p( 1 + r/n)^t*n

t = 3.5*2 = 7
r = 0.08/2 = 0.04

A = 25000( 1+ 0.04)^7
A = 25000( 1.04)^7
A = $32,898.29
P = Po(1+r)^n

P = $25,000

Po = ? = Initial principal.

r = (8%/2)/100% = 0.04 = Semi-annual %
rate expressed as a decimal.

n = 2Comp./yr. * 3.5yrs. = 7 Compounding
periods.

P = Po(1.04)^7 = 25,000
Po = 25,000/1.04^7 = $18,997.95 Down.