How much money should be deposited today in an account that earns 7 % compounded semiannually so that it will accumulate to 13 comma 000 in three years?

Solution

Solution

Principal : 10.58

Solution steps

Translate the problem into an equation:

13 = P (1 + \frac{0.07}{2})^{2 \cdot 3}

Solve for

P, 13 = P (1 + \frac{0.07}{2})^{2 \cdot 3} : P = 10.58

Principal : 10.58

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How much money should be deposited today in an account that earns 7 % compounded semiannually so that it will accumulate to 13 comma 000 in three​ years?

Solution

Solution

Popular Examples

How much money should be deposited today in an account that earns 7 % compounded semiannually so that it will accumulate to 13 comma 000 in three years?