How much money must you deposit at 6% interest compounded semiannually in order to earn $913.50...

Question

Question

How much money must you deposit at 6% interest compounded semiannually in order to earn $913.50 interest in one year? A depos

business accounting

Answer 1

Answer #1

Future value = Present Value X (1 + Interest Rate)^Period

Here Futrure value = 913.50, Interest rate = 3%, Period = 2 semi annual

913.5 = Present value X (1 + 3%)^2

Present value = $ 861

Answer 2

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