Financial Math

How much should be invested at 8% compounded semiannually in order to have $5000 at the end of 8 years?

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- Nov 28th 2006, 05:28 PMstephDon't Have A Clue!!
Financial Math

How much should be invested at 8% compounded semiannually in order to have $5000 at the end of 8 years? - Nov 28th 2006, 06:10 PMSoroban
Hello, steph!

You're expected to know the compound interest formula:

. .

. . where: .

Quote:

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.