How much money should be deposited today in an account that earns 6% compounded semiannually so that it will accumulate to $ 10000 in three​ years?

Answer 1

FV = Po(1+r/n)^nt

where FV = Future Value = 10K=$10,000

Po = initial Principal

n= number of compounding periods per year= 2

t = years=3

r = annual rate of interst = APR=6%=.06

plug in the numbers, solve for Po

10K = Po(1+.06/2)^2(3)

Po = 10000/(1.03)^6 = about $8,374.84

Answer 2

FV=$10,000

r=0.06

n=2

t=3

10,000 = P(1 + 0.06/2)²⁽³⁾

P = 10,000/(1 + 0.06/2)²⁽³⁾

P = 8374.84