If a savings fund pays interest at a rate of 6% per year compounded semiannually, how much money invested now will amount to $5000 after 1 year? (Round your answer to the nearest cent.)
two payments at 3% each
x * 1.03 * 1.03 = x *1.03^2 = 5,000
so
x = 5,000 / 1.03^2