Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded semiannually, for 4 years.

Question

Math

Answer 1

10,000 compounded twice a year at 9% for four years

A= 10,000(1+.09/2)^(2)(4)

= 10,000(1.045)^8

= about $14,221

or maybe you meant

10000= P(1+.09/2)^(2)(8)

P = 10000/(1.045^8)=about $7032