  # Delany wants \$15,000 saved in 2 years to make a down payment on a house. How much money should she invest now at 7.7% compounded semiannually in order to meet her goal?

Question

Delany wants \$15,000 saved in 2 years to make a down payment on a house. How much money should she invest now at 7.7% compounded semiannually in order to meet her goal?

check_circleExpert Solution
Step 1

Compound Interest formula

If P is the principal amount, r is the annual rate of interest, t is the number of years the amount is deposited, n is the number of times the interest is compounded per year and A is the amount of money accumulated after n years, including interest, then,

Step 2

Here, A = \$15,000, t = 2 years, r = 7.7%, n =2.

Compute the value of P using the compound interest formula...

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### Algebra 