Mia Kaminsky wants to attend Riverside Community College. She will need to have $25,000 six years from today. Mia is wondering what she will have to put back in the bank today so she will have $25,000 six years hence. Her bank pays 5 percent compounded semiannually. By using tables in the handbook, the amount Mia will have to deposit is?

Question

amistre64 · Answer

we aint got the tables

amistre64 · Answer

but; comp semiann means 2 times a year

25000 = P(1+.05/2)^(2*6); and we solve for P