Financial Math
How much should be invested at 8% compounded semiannually in order to have $5000 at the end of 8 years?
Hello, steph!
You're expected to know the compound interest formula:
. .
. . where: .
How much should be invested at 8% compounded semiannually
in order to have $5000 at the end of 8 years?
We are given: .
So we have: .
Then: .
Therefore, should be invested.