Answer to Question #289905 in Financial Math for jatt

Question #289905

What amount of money invested today at 3.54% compounded semiannually will have an accumulated value of $551,000 in 7 years from now. Round all answers to two decimal places if necessary.


1
Expert's answer
2022-01-24T15:59:18-0500

Solution:

A=$551,000;t=7;n=2;r=3.54%A=\$551,000; t=7;n=2;r=3.54\%

Let the invested money be $P.

Using A=P(1+r100n)ntA=P(1+\dfrac{r}{100n})^{nt}

551000=P(1+3.54200)14551000=P(1.2784)P=$431007.51\Rightarrow 551000=P(1+\dfrac{3.54}{200})^{14} \\ \Rightarrow 551000=P(1.2784) \\ \Rightarrow P=\$431007.51


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