You would like to have $3000 in four years for a special vacation by making a lump-sum investment in an account that pays 9.5% compounded semiannually. How much should you deposit now ?

Answer 1

D [1 + (.095 / 2)]^(4 * 2) = 3000

D * 1.0475^8 = 3000 ... D = 3000 / 1.0475^8