Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How much money should be deposited today in an account that earns 8% compounded semiannually so that it will accumulate to $10,000 in three years?

image text in transcribedimage text in transcribed

How much money should be deposited today in an account that earns 8% compounded semiannually so that it will accumulate to $10,000 in three years? Click the icon to view some finance formulas. The amount of money that should be deposited is $ (Round up to the nearest cent.) In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. A=P(1+nr)ntP=(1+nr)ntAA=PertY=(1+nr)n1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Ultimate Beginners Guide To Understanding NFTs

Authors: LM Anderson

1st Edition

1739781732, 978-1739781736

More Books

Students also viewed these Finance questions

Question

Question What happens to my plan if I die?

Answered: 1 week ago