How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 8% interest compounded semi-annually.

Answer 1

P = A / (1+(r/n)^(nt)) = 4000/(1+(.08/2))^(10*2) = I explain in the video above

Answer 2

4000 = P(1+.08/2)²⁽¹⁰⁾

_{4000 = P(1 - .04)}²⁽¹⁰⁾

4000 = P(1.04)²⁰

4000 = P(2.19)

4000/2.19 = P/2.19

1826 = P

Principal = $1,825