How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years?a Click the icon to view some finance formulas......The amount of money that should be deposited is $(Round up to the nearest cent.)FormulasIn the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.ntAA = P 1+P =A =PetY =- 1nt1+PrintDone

The amount of deposit required today is calculated as the present value.

How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years? a Click the icon to view some finance formulas. .... The amount of money that should be deposited is $ (Round up to the nearest cent.)

How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years? a Click the icon to view some finance formulas. .... The amount of money that should be deposited is $ (Round up to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Question

How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years?
a Click the icon to view some finance formulas.
.....
The amount of money that should be deposited is $
(Round up to the nearest cent.)
Formulas
In the provided formulas, A is the balance in the account after t years, P is the
principal investment, r is the annual interest rate in decimal form, n is the number
of compounding periods per year, and Y is the investment's effective annual yield
in decimal form.
nt
A
A = P 1+
P =
A =Pet
Y =
- 1
nt
1+
Print
Done

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