How much is our onetime deposit if in 4 years we want 285493

How much is our one-time deposit, if in 4 years we want $28,549(3% rate, compounded twice per year)?

Ans:

Given time= 4 years

Amount required at the end of 4 yrs= $28549

Rate = 3% compounded twice per year.

Let the initial one time deposit be P.

Thus, we have 28549 = P( 1+ 0.03/2)^2

=> 28549 = P ( 1+0.015)^2

=> 28549 = P (1.015^2 )

Thus P = 28549/1.030225 = $ 27711.42 (ans)