Posted by **Will** on Saturday, September 8, 2012 at 8:23pm.

How much must you deposit in an account

that pays 6% semi-annual interest, compounded annually, to have a balance of $9000 in 15 years?

I'm stuck with this question, please explain the steps for the answer.

- backwards?? -
**Damon**, Saturday, September 8, 2012 at 8:32pm
Are you sure it is not 6% annual compounded semi-annually ?

- Math -
**Will**, Saturday, September 8, 2012 at 8:35pm
No Idea, the question completely asks that. I was thinking about 12% annually compounded, but the answer I got was wrong due to Solve and Check.

- Math -
**Damon**, Saturday, September 8, 2012 at 8:37pm
15 years is 30 periods each 3% or multiply by 1.03 every six months

9000 = d * 1.03^30

9000 = 2.427262471 d

d = $ 3,707.88

- Math -
**Damon**, Saturday, September 8, 2012 at 8:40pm
12% is way high and no one expresses compounding annually with semi annual interest rate. Typo in your book I suspect.

## Answer This Question

## Related Questions

- Math - How much must you deposit in an account that pays 6% semi-annual interest...
- Algebra - Show how you substitute the values into the formula, then use your ...
- math - This problem has to do with exponential models. The question says, you ...
- algebra - You deposit $500 in an account that pays 3% annual interest. Find the ...
- math - If you have a savings of $2235 and deposit the amount into an account ...
- Simple & Compounding Interest - I am SO STUCK on this problem... PLEASE HELP ...
- math - You deposit $2200 in an account that pays 3% annual interest. After 15 ...
- Pre Calculas - If you deposit $5,000 in an account that pays 5% interest ...
- Statistics - Mary has a savings account and is earning 10% annual interest ...
- math - You deposit $24000 in an account that pays 2.4% annual interest ...

More Related Questions