How much money should be deposited today in an account that earns 0.07% compounded semiannually so that it will accumulate to 10,000 in three​ years?

Question

p=10,000/(1+0.07/2)*2(3)

Answer 1

10,000=P(1+.07/2)^2(3)

P = 10,000/(1.035)^6

use a calculator

P=about $8,135.01 rounded of to nearest cent

General formula is

A=P(1+r/n)^nt where r= interest rate, n= number of compounding periods per year, t= number of years

P = Principal or beginning investment. A= Amount it's grown to in t years at r interest compounded n times per year

A=10,000 = Amount you want

P= investment you need to get A in t years

t=3 years

r=.07= 7%

n=2 for biannual compounding