Algebra

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

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  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

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    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.

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    posted by Henry

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