# Algebra

How much down is needed to get to 25000 at 8 percent interest compounded semianually for 3 .5 years

1. 👍 0
2. 👎 0
3. 👁 42
1. A = p( 1 + r/n)^t*n

t = 3.5*2 = 7
r = 0.08/2 = 0.04

A = 25000( 1+ 0.04)^7
A = 25000( 1.04)^7
A = \$32,898.29

1. 👍 0
2. 👎 0
posted by Kuai
2. P = Po(1+r)^n

P = \$25,000

Po = ? = Initial principal.

r = (8%/2)/100% = 0.04 = Semi-annual %
rate expressed as a decimal.

n = 2Comp./yr. * 3.5yrs. = 7 Compounding
periods.

P = Po(1.04)^7 = 25,000
Po = 25,000/1.04^7 = \$18,997.95 Down.

1. 👍 0
2. 👎 0
posted by Henry

## Similar Questions

1. ### Math

\$6550 is compounded semianually at a rate of 18% for 18 years. find the total amount in the compound interest account round to the hundredth as needed.

asked by christopher on April 17, 2010
2. ### Algebra II

An investment service promises to triple your money in 12 years. Assuming continuous compounding of interest, what rate of interest is needed? For the question is it asking me if simple interest or continuously compounded interest

asked by Anonymous on May 25, 2010
3. ### Finance

When Samuel Pepys, the British diarist, lent his friend Lady Sandwich £100 in 1668, he charged her 6 percent interest. If the loan was due at the end of 1 year, how much would Lady Sandwich have had to pay if interest was (a)

asked by Bryan on January 10, 2011
4. ### algebra

In an episode from the TV show Futurama, Phillip J. Fry had \$0.93 in his bank account in 2000. In the year 3000 it had grown to \$4.3 billion! What was the percent interest rate (to three decimal places) if it had been continuously

asked by Andrea on December 12, 2012
5. ### Math (MS112)

What rate of interest, to the nearest tenth of a percent, compounded quarterly is needed for an investment of \$1700 to grow to \$2600 in 12 years? I am given the formula A=P(1+r/n)^nt

asked by Taylor on November 27, 2012
6. ### finance

14. Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly. Account B has an annual percentage rate of 7.45 percent with interest

asked by Vaness on December 30, 2011
7. ### math

Steve wants to have \$25000 in 25 years, he can only get 3.2% interest compounded quarterly. his bank will guarantee the rate for either 5 or 8 years in 5 years he can get 4% compounded quarterly for the remainder of the term in 8

asked by Anonymous on January 14, 2016
8. ### maths

You deposited 25000# in an account that earns 7% interest compounded monthly. A)write the first 6terms of the sequence if the initial deposit is excluded B)find the balance in the account after 5years