4 1 points FDPreCalc5 52039 what initial investment at 85 co

4. -1 points FDPreCalc5 5.2.039 what initial investment at 8.5% compounded semiannually for 7 years will accumulate to $10,000? (Round your answer to two decimal places.) Talk to Tutor

Solution

r = 8.5%

t = 7 years

A = $10000

compounded semiannually, n =2:

Now A = P*[1 + (r/n)]^nt

10000 = P*[1 + (0.085/2)]^(2*7) = P*1.79087

P = $5583.9