asked 193k views
2 votes
after 6 years, an investment is worth $8479. if the money was invested at 9% interest compounded semiannually what was the initial investment

asked
User Gbdivers
by
7.8k points

1 Answer

3 votes

The solution would be like this for this specific problem:

8479 = P * (1 + 0.09/2)^(2 * 6)
8479 = P * (1 + 0.045)^12
8479 / (1.045)^12 = P
P = 4999.7599101968641899706115543368

If the money was invested at 9% interest compounded semiannually, the initial investment is $5000. I am hoping that this answer has satisfied your query and it will be able to help you in your endeavor, and if you would like, feel free to ask another question.

answered
User Holy
by
7.1k points

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