Find the amount that schould be invested now to accumulate following amounts,if te money is compounded as indicated.

$2000 at 9% compund semiannually for 8 years. i don't know how u do this

you take 2000(1+.09/12)^96 and you'll get the answer

No, I don't that's quite what the question asked for. We're asked
"Find the amount that schould be invested now to accumulate following amounts,if te money is compounded as indicated.

$2000 at 9% compund semiannually for 8 years. i don't know how u do this"

You compounded it monthly, we only need to do it every six months so we use
2000= P(1+.09/2)^16 Now solve for P.
The semi-annual rate is 4.5% so i=.045 and n =2*8=16.
Also, we want to find a present value given a future value. Check that I read it correctly.

Yes, you read the question correctly. We are given a future value of $2000 and we need to find the present value. To do this, we can rearrange the compound interest formula to solve for the present value (P).

The formula for compound interest is: FV = PV * (1 + r/n)^(n*t), where:
FV = Future value
PV = Present value
r = Interest rate
n = Number of times compounded per year
t = Number of years

In this case, the future value (FV) is $2000, the interest rate (r) is 9%, the number of times compounded per year (n) is 2 (semiannually), and the number of years (t) is 8.

So, the formula becomes: $2000 = P * (1 + 0.09/2)^(2*8)

To solve for P, divide both sides of the equation by (1 + 0.09/2)^(2*8):

P = $2000 / (1 + 0.09/2)^(2*8)

Simplifying the equation:

P = $2000 / (1.045)^16

Now, calculate (1.045)^16 using a calculator:

P ≈ $2000 / 1.8389

P ≈ $1089.71

So, approximately $1089.71 should be invested now in order to accumulate $2000 at a 9% compound interest rate semiannually for 8 years.