Answer: You should deposit about $17014 or little more
Step-by-step explanation:
use the compound interest formula.
A= p( 1 + r/n)^nt
Where A is the amount you will save over some years .
p is the principal or start up amount mostly known as the initial fee.
r is the interest rate represent by a decimal so 7% will be 0.07.
n is the number of times the interest is being applied annually. Semiannually means twice. So n will be 2.
T is the time the money will elapsed. So in 5 years the money will elapse. Now input the values into the formula and solve for p the principal.
24,000 = p( 1 + 0.07/2)^2*5
24,000= p( 1 + 0.035)^10
24000 = p( 1.035)^10
24000 = p( 1.41059876062) Divide both sides by 1.41059876062
p = 17104
Which means you should deposit about $17014 or little more