Problema Solution
An Investor pays 9%compound semiannually. I want to have $10,000 in the future.How much should I deposit now to have that amount in 5 years?
Round to the nearest cent.
Answer provided by our tutors
A(t) = P(1+(r/n))^(nt)
10000 = P(1+(0.09/2))^(2*5)
1o000 = P(1.045)^10
10000 = P(1.553)
P = $6439.15