Question

What is the principal that will grow to $3800 in six years, eleven months at 7.6% compounded semi-annually?

The principal is $.
(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

Explanation:

Compounding formula :

FV = PV (1+i)^n i = decimal interest per period = .076 / 2

n = periods of 6 months = 83/6

FV = future value =$ 3800 PV = principal = ?

6^

$ 3800 = PV ( 1 + .076 / 2) ^83/6 < === solve for PV

PV = $ 2268.402965 ( to six decimal places?)