math

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

  1. 👍 0
  2. 👎 0
  3. 👁 96
asked by AJAY
  1. 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.

    1. 👍 0
    2. 👎 0
    posted by Henry

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    allow 2 summers of working, Samuel has decided to invest his earnings. SAMUELS BANK OFFERS TWO CDS, a preferred CD $10,000 minimum at 1% interest, or a standard CD with $7000 minimum at 2%interest earned annually. Samuel has $8000

    asked by donny humphreys on January 12, 2015
  2. algabra

    Three individuals form a partnership and agree to divid the profits equally. x invest $9000, y invest $7000 z invest $4000. how much much less does x receive than if the profists were divided in proportion to the amount invest

    asked by Agnes on June 10, 2013
  3. Precalc

    suppose you want to invest $60,000 for ten years. You can invest your money in a CD that earns 4% interest, compounded quarterly and has no risk, or you can invest your money in futures that ear 10% interest, compounded quarterly.

    asked by Sophia on November 5, 2015
  4. Math

    I have to invest $7000 and would like $300 as earnings from the investment. How much should I invest in stock that's getting 13% annual return and how much should I invest in a bond that pays 2%?

    asked by Jane on September 15, 2016
  5. Math

    Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly. a. Calculate the two APYs and compare them to determine your answer.

    asked by Maddy on April 14, 2014
  6. Math

    a mother wants to invest 7000 for her son's future education.she invest in two account: a money market fund that pays 4% and a certificate of deposit that pays 7%. if the total interest earned after one year is $420, how much

    asked by Kenetta on September 27, 2017
  7. Math

    Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly. a) Calculate the two APYs and compare them to determine your answer.

    asked by Megan on April 13, 2014
  8. Math

    Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly. a) Calculate the two APYs and compare them to determine your answer.

    asked by Maddy on April 15, 2014
  9. finance

    David will retire to Florida in ten years. After he retires, he wants to take out $28,000 at the end of each year for 15 years. If he can invest the money at 8% annually, what amount must he invest today?

    asked by mo on July 8, 2013
  10. math

    how much money should you invest now to have 6000 in 11 years if you invest the money at a rate of 11.1%. compounded semiannually.

    asked by nichole on July 3, 2011

More Similar Questions