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how much money should you invest now to have 7000 in 11 years if you invest the money at a rate of 9.3%. compounded semiannually

  • math -

    Pt = Po(1+r)^n,

    r = APR/2 = 9.3 / 2 = 4.65% = 0.0465 =
    rate per compounding period.

    n = 2 comp./yr * 11yrs = 22 compounding
    periods.

    7000 = Po(1.0465)^22,
    Po = 7000 / (1.0465)^22 = $2575.34.

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