Question

How much money would you need to deposit today at 7% annual interest

compounded semi animally to have $50,000 in the account after 6 years?*

Answer 1

$33,090.

Explanation:

The formula is A = P( 1 + r/2)^2n so we have:

50,000 = P(1 + 0.07/2)^(6*2)

50000 = P * 1.035^12

P = 50000/ 1.035^12

= $33,090 to the nearest dollar.